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A
BILL
to give effect to the financial proposals of the Federal Government for the year
beginning on the first day of July, 2019, and to amend certain laws
WHEREAS it is expedient to make provisions to give effect to the financial proposals
of the Federal Government for the year beginning on the first day of July, 2019, and to
amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-
1 Short title, extent and commencement. ─ (1) This Act may be called the Finance
Act, 2019.
(2) It extends to the whole of Pakistan.
(3) It shall come into force on the first day of July, 2019 Act by the President of
Islamic Republic of Pakistan.
2 Amendment of the Stamp Act, (II of 1899). In the Stamp Act, 1899 (II of 1899), as
in force in the Islamabad Capital Territory,–
(a) after section 27, the following new section, shall be inserted, namely:–
"27A Valuation of immovable property.– (1) Where any instrument
chargeable with ad valorem duty under Articles 23,31 or 33 of Schedule-I
relates to an immovable property, the value of the immovable property shall
be calculated according to the valuation table notified by the district collector
in respect of immovable property situated in the locality.
(2) Where an instrument, mentioned in sub-section (1), relates to
immovable property consisting of land and structure, it shall state the value of
the land and structure separately and the value of the structure stated in the
instrument shall, subject to the provisions of this Act, be accepted.
2
(3) Where the value of immovable property stated in an instrument
to which sub-section (1) applies is more than the value fixed according to the
valuation table, the value declared in the instrument shall be accepted as
value for the purposes of stamp duty.
(4) Where the value given in the valuation table notified under sub-
section (1), when applied to any immovable property, appears to be
excessive, the deputy commissioner or commissioner (revenue) or any other
person notified by the Government for this purpose may, on application made
to him by the aggrieved person, determine its correct value and for that
purpose the provisions of sections 31 and 32 shall apply as nearly as
possible."; and
(b) for Schedule I, the following shall be substituted, namely:–
SCHEDULE 1
STAMP-DUTY ON INSTRUMENTS
[See sections 3 and 27A]
Description of Instruments Proper Stamp-duty
(1) (2)
1. ACKNOWLEDGMENT of a debt exceeding twenty
rupees in amount, or value, written or signed by, or on
behalf of, a debtor in order to supply evidence of such
debt in any book other than a banker’s pass-book or on a
separate piece of paper when such book or paper is left in
the creditor’s possession; provided that such
acknowledgement does not contain any promise to pay
3
the debt or any stipulation to pay interest or to deliver any
goods or other property:-
(a) where such amount does not exceed two
thousand rupees
(b) where such amount exceeds two thousand
rupees but does not exceed ten thousand rupees.
(c) where such amount exceeds ten thousand
rupees
One Rupee
Two Rupees
Five Rupees
2. ADMINISTRATION BOND, including a bond given
under sections 291, 375 and 376 of the Succession Act,
1925 (XXXIX of 1925), section 6 of the Government
Savings Banks Act, 1873 (V of 1873) —
(a) where the amount does not exceed Rs.
1,000;
(b) in any other case
The same duty as on a
Bond (No. 17) for such
amount.
One hundred Rupees
3. ADOPTION-DEED that is to say, any instrument (other
than a will) recording an adoption or conferring or purporting to
confer an authority to adopt.
ADVOCATE, see ENTRY AS AN ADVOCATE (No. 32).
One hundred Rupees
4. AFFIDAVIT, including an affirmation or declaration
in the case of persons by law allowed to affirm or declare
Fifty Rupees
4
instead of swearing, except affidavit or declaration in
writing when made –
EXEMPTIONS:– Affidavit or declaration in writing when
made—
(a) as a condition of enrolment under the
Pakistan Army Act, 1952 (XXXIX of 1952),
or the Pakistan Air Force Act, 1953 (VI of
1953) or the Pakistan Navy Ordinance,
1961 (XXXV of 1961);
(b) for the immediate purpose of being filed or
used in any Court or before the officer of
any Court; or
(c) for the sole purpose of enabling any person
to receive any pension or charitable
allowance.
5. AGREEMENT OR MEMORANDUM OF AN
AGREEMENT—
(a) if relating to the sale of a bill of exchange;
(b) if relating to the sale of Government
security;
(c) if relating to the sale of a share in an
Two Rupees.
One Rupee for every Rs.
10,000 or part thereof of
the value of the security,
subject to a maximum of
One Hundred Rupees.
5
incorporated company or other body
corporate;
(d) If not otherwise provided for.
EXEMPTIONS:– Agreement or memorandum of an
agreement—
(a) for or relating to the purchase of or sale of
goods or merchandise exclusively, not
being a note or memorandum chargeable
under No.45;
(b) (b) made in the form of tenders to the
Federal Government for or relating to any
loan.
AGREEMENT TO LEASE See LEASE (No.37).
One Rupee for every
rupees 5,000 or part
thereof of the value of the
share.
Fifty Rupees
6. AGREEMENT RELATING TO DEPOSIT OF TITLE-
DEEDS, PAWN OR PLEDGE, that is to say, any
instrument evidencing an agreement relating to—
(1) the deposit of title-deeds or instruments
constituting or being evidence of the title to
any property whatever (other than marketable
security), or
(2) the pawn or pledge of movable property,
where such deposit, pawn or pledge has
been made by way of security for the re-
6
payment of money advanced or to be
advanced by way of loan or an existing or
future debt—
(a) if such loan or debt is repayable on
demand or more than three months
from the date of the instrument
evidencing the agreement;
(i) in the case of banking
companies or other financial
institutions, when the
entire finance is not based on
interest; and
(ii) in any other case
(b) if such loan or debt is repayable not
more than three months from the
date of such instrument;
(i) in the case of banking
companies or other financial
institutions, when the entire
finance is not based on
interest; and
(ii) in any other case
One-fifth of one percent
that is to say, 0.2% of the
loan amount subject to a
maximum of one hundred
rupees.
One-fifth of one percent
that is to say, 0.2% of the
loan amount.
One-tenth of one percent
that is to say 0.1% of the
loan subject to a
maximum of fifty
7
thousand rupees.
One-tenth of one percent
that is to say 0.1% of the
loan amount.
7. APPOINTMENT IN EXECUTION OF A
POWER where made by any writing not being a will—
(a) of trustees
(b) of property, movable or immovable
Fifty Rupees.
One hundred Rupees.
8. APPRAISEMENT OR VALUATION made
otherwise than under an order of the Court in the
course of a suit—
(a) where the amount does not exceed Rs.
1,000;
(b) in any other case
EXEMPTIONS:–
(a) Appraisement or valuation made for the
information of one party only, and not being
in any manner obligatory between parties
either by agreement or operation of law.
(b) Appraisement, of crop for the purpose of
ascertaining the amount to be given to a
The same duty as on a
Bond (No. 17) for such
amount.
One Hundred rupees.
8
landlord as rent.
9. APPRENTICESHIP-DEED, including every writing
relating to the service or tuition of any apprentice
clerk or servant, placed with any master to learn any
profession, trade or employment not
being ARTICLES OF CLERKSHIP (No. 11).
EXEMPTIONS:– Instrument of apprenticeship executed
by a Magistrate under the Apprenticeship Ordinance,
1962 (LVI of 1962), or by which a person is apprenticed
by or at the charge of any public charity.
One Hundred rupees.
10. ARTICLES OF ASSOCIATION OF A
COMPANY—
(a) Where the company has no share capital or
the nominal share capital does not exceed
Rs. 2,500.
(b) where the nominal share capital exceeds
Rs. 2,500 but does not exceed Rs.
1,00,000;
Fifty rupees.
One hundred rupees.
9
(c) where the nominal share capital exceeds
Rs. 1,00,000 but does not exceed Rs.
10,00,000;
(d) Where the nominal share capital exceeds
Rs. 10,00,000.
EXEMPTIONS:– Articles of any Association and not
formed for profit and registered under section 42 of the
Companies Act, 2017 (XIX of 2017).
See also MEMORANDUM OF ASSOCIATION OF A
COMPANY (No.41).
Two hundred rupees.
Five hundred rupees.
11. ARTICLES OF CLERKSHIP OR contract whereby
any person first becomes bound to serve as a clerk
in order to his admission as an attorney in any High
Court.
ASSIGNMENT, See CONVEYANCE
(No.24),TRANSFER (No.64) and TRANSFER OF
LEASE (No.65), as the case may be. ATTORNEY,
See ENTRY AS AN ATTORNEY (No. 32), AND
POWER OF ATTORNEY (No.50).
One Thousand rupees.
12. AIR TICKETS issued by any Airline---
(i) for domestic flights;
(ii) for international flights
Twenty five rupees per
ticket.
Two hundred and fifty
10
13. AUTHENTICATED DECLARATIONS that is to say
declaration of newspaper, periodicals or printing
presses authenticated by legally competent
Authority.
Explanation I. The duty shall be paid by a declarant.
Explanation II. The declaration shall not be authenticated
unless the duty is paid.
rupees per ticket.
Five thousand rupees per
declaration
14. AWARD, that is to say, any decision in writing by
an arbitrator or umpire, not being an award
directing a partition, on a reference made
otherwise than by an order of the Court in the
course of a suit.
Three percent of the
amount or value of the
property to which the
award relates as set forth
in such award.
15. BILL OF EXCHANGE as defined by section 2 (2)
not being BOND, bank note or currency note—
(a) where payable otherwise than on demand
but not more than one year after date or
sight—
(i) if drawn singly
Two rupees for every one
11
(ii) if drawn in set of two or more, for
each part of the set.
(b) where payable more than one year after
date or sight.
(i) If drawn singly
(ii) If drawn in set of two for each part of
the set
(iii) If drawn in set of three for each part
of the set
thousand rupees or part
thereof of the amount of
the Bill
One rupees for every one
thousand rupees or part
thereof of the amount of
the Bill.
Three rupees for every
one thousand rupees or
part thereof the amount of
Bill.
Two rupees for every one
thousand rupees or part
thereof the amount of Bill.
One rupees for every one
thousand rupees or part
thereof the amount of Bill.
12
16. BILL OF LADING (including a through bill of
lading).
Note —If a bill of lading is drawn in parts, the
proper stamps therefor must be borne
by each one of the sets.
EXEMPTIONS:–
(a) Bill of the lading when the goods therein
described are received at a place within the
limits of any port as defined under the Ports
Act, 1908 (XV of 1908), and are to be
delivered at another place within the limits
of the same port.
(b) Bill of lading when executed out of
Pakistan and relating to property to be
delivered in Pakistan.
Ten rupee.
13
17. BOND as defined by section 2 (5) not being a
DEBENTURE (No.27) and not being otherwise
provided for by this Act, or by the Court Fees Act,
1870 (VII of 1870)—
(i) where the amount or value secured does
not exceed five thousand rupees
(ii) where it exceeds five thousand rupees for
every additional amount of five hundred
rupees or part thereof
See ADMINISTRATION BOND (No.2), BOTTOMRY
BOND (No.18), CUSTOMS BOND (No.27).
INDEMNITY BOND (No.36), RESPONDENTIA BOND
(No.58) SECURITY BOND (No.59).
EXEMPTIONS:– Bond when executed by any person
for the purpose of guaranteeing that the local income
derived from private subscription to a Charitable
dispensary or hospital or any other object of public utility
shall not be less than a specified sum per mensum.
Fifteen Rupees
Fifteen Rupees
18. BOTTOMRY BOND, that is to say, any instrument
where by the master of a seagoing ship borrows
money on the security of the ship to enable him to
preserve the ship or prosecute her voyage.
The same duty as on a
Bond (No.17) for the same
amount.
19. CANCELLATION, instrument of (including any
instrument by which any instrument previously
Five Hundred rupees.
14
executed is cancelled), if attested and not
otherwise provided for.
See also RELEASE (No.57), REVOCATION OF
SETTLEMENT (No.60-B), SURRENDER OF LEASE
(No.63), REVOCATION OF TRUST (No.66-B).
20. CERTIFICATE OF SALE (in respect of each
property put up as a separate lot and sold) granted
to the purchaser of any property sold by public
auction by a Civil or Revenue Court, or Collector or
other Revenue Officer—
Four percent of the
consideration equal to the
amount of the purchase
money.
21. CERTIFICATE OR OTHER DOCUMENT
evidencing the right or title of the holder thereof or
any other person, either to any shares, scrip or
stock in or of any incorporated company or other
body corporate, or to become proprietor of
shares, scrip or stock in or of any such company
or body.
See also LETTER OF ALLOTMENT OF SHARES
(No.38).
Fifty rupees
22. CHARTER PARTY, that is to say, any instrument
(except an agreement for the hire of a tug-
steamer) whereby a vessel or some specified
principal part thereof is let for the specified
purposes of the charterer, whether it includes a
Fifty rupees.
15
penalty clause or not.
23. COMPOSITION-DEED, that is to say, any
instrument executed by a debtor whereby he
conveys his property for the benefit of his creditors,
or whereby payment of a composition or dividend
on their debts is secured to the creditors, or
whereby provision is made for the continuance of
the debtor’s business under the supervision of
Inspector or under letters of licence for the benefit of
his creditors.
One Hundred rupees.
24. CONVEYANCE as defined by section 2 (10) not
being a TRANSFER charged or exempted under
No. 64
Four percent of the value of
the property
25. COPY OR EXTRACT certified to be a true copy
or extract by or by order of any public officer and
not chargeable under the law for the time being
in force relating to court-fees—
(i) if the original was not chargeable with
duty or if the duty with which it was
chargeable does not exceed four rupees;
(ii) in any other case
EXEMPTION:–
(a) Copy of any paper which a public officer is
Five rupees.
Ten rupees.
16
expressly required by law to make or furnish
for record in any public office or for any
public purpose;
(b) Copy of, or extract from, any register
relating to births, baptisms, 16 aming,
dedications, marriages (divorces), deaths or
burials.
26. COUNTERPART OR DUPLICATE of any
instrument chargeable with duty and in respect
of which the proper duty has been paid—
(a) if the duty with which the original
instrument is chargeable does not exceed
four rupees;
(b) in any other case
EXEMPTION:–
Counterpart of any lease granted to cultivator
when such lease is exempted from duty.
The same duty as is
leviable on the original.
Ten rupees.
27. CUSTOMS BOND—
(a) where the amount does not exceed Rs.
1,000;
(b) in any other case
The same duty as on a
Bond (No.17) for such
amount.
One Hundred rupees.
28. DEBENTURE OR PARTICIPATION TERM
CERTIFICATE OR TERM FINANCE CERTIFICATE OR
One-twentieth of one
percent that is to say 0.05%
17
ANY OTHER INSTRUMENT OF REDEEMABLE
CAPITAL OTHER THAN
of the face value
A. COMMERCIAL PAPER whether or not a
mortgage debenture or Participant Term Certificate,
or Term Finance Certificate or any other instrument
of redeemable capital being a marketable security
transferable or by endorsement or by separate
instrument of transfer or by delivery.
Explanation—The term “Debenture” includes any
interest coupons attached thereto, but the amount of
such coupons shall not be included in estimating the
duty.
EXEMPTION:–
A debenture issued by an incorporated company or
other body corporate in terms of a registered mortgage-
deed, duly stamped in respect of the full amount of
debentures to be issued thereunder, whereby the
company or body borrowing makes over, in whole or in
part, their property to trustees for the benefit of the
debenture, holders, provided that the debentures so
issued are expressed to be issued in terms of the said
mortgage-deed.
See also BOND (No.17), and SECTIONS 8 and 55.
DECLARATION OF ANY TRUST See TRUST (No.66).
Subject to a maximum of
one million rupees
18
29. DECREE, RULE OF A COURT OR AN ORDER
OF A COURT based on mutual consent of parties in
cases involving transfer on an immovable property
including sale, exchange, gift or mortgage, declaring or
conferring a right in or title to an immovable property.
Explanation: Value in this Article, means value of
property in accordance with the valuation table as
notified by the Collector or where valuation table is not
available the average sale price of a property of similar
nature in the same revenue estate or locality in the
preceding year as may be determined by Collector.
Four percent of the value of
property.
30. DELIVERY-ORDER IN RESPECT OF GOODS,
that is to say, any instrument entitling any person therein
named, or his assigns or the holder thereof, to the
delivery of any goods lying in any dock or port, or in any
ware-house in which goods are stored or deposited on
rent or hire, or upon any wharf such instrument being
signed by or on behalf of the owner of such goods upon
the sale or transfer of the property therein when such
goods exceed in value twenty rupees.
DEPOSIT OF TITLE-DEED. See AGREEMENT relating
to DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE
(No.6).
DISSOLUTION OF PARTNERSHIP. See
Ten Rupees.
19
PARTNERSHIP (No.48).
31. DIVORCE—Instrument of, that is to say any
instrument by which any person effects the dissolution
of his marriage.
DOWER—Instrument of. See SETTLEMENT (No.60).
DUPLICATE. See COUNTERPART (No.26).
One Hundred rupees.
32. ENTRY AS AN ADVOCATE, OR ATTORNEY
ON THE ROLL OF ANY HIGH COURT—under
the Legal Practitioners and Bar Councils Act,
1973 (XXXV of 1973)—
(a) in the case of an Advocate
(b) (b)in the case of an Attorney
One thousand five hundred
rupees.
Two thousand rupees.
33. EXCHANGE OF PROPERTY— Instrument of—
EXTRACT. See COPY (No.25)
The same duty as is
leviable on a Convey-ance
(No.24) for a consideration
equal to the value of the
property of greatest value
as set forth in such
instrument.
20
34. FURTHER CHARGE—Instrument of, that is to
say, any instrument imposing a further charge on
mortgaged property—
(a) when the original mortgage is one of the
description referred to in clause (a) of
Article No.40 (that is, with possession);
(b) when such mortgage is one of the
description referred to in clause (b) of
Article No.40 (that is, without
possession)—
(i) if at the time of execution of the
instrument of further charge
possession of the property is given
or agreed to be given under such
instrument;
(ii) If possession is not so given.
The same duty as on a
Conveyance (No.24) for a
consideration equal to the
amount of the further
charge secured by such
instrument.
The same duty as on a
Conveyance (No.24) for a
consideration equal to the
total amount of the charge
(including the original
mortgage and any further
charge already made) less
the duty already paid on
such original mortgaged and
further charge.
The same duty as on a
21
Bond (No.17) for the
amount of the further
charge secured by such
instrument.
35. GIFT—Instrument of, not being
SETTLEMENT(No.60) OR WILL OR
TRANSFER (No.64). HIRING AGREEMENT or
AGREEMENT FOR SERVICE. See
AGREEMENT (No.5).
The same duty as is leviable
on a Conveyance (No.24)
for a consideration equal to
the value of the property as
set-forth in such instrument.
36. INDEMNITY BOND.
INSPECTORSHIP-DEED—See COMPOSITION-DEED
(No. 23).INSURANCE— See POLICY OF INSURANCE
(No. 49).
The same duty as on a
Security Bond (No. 59) for
the same amount.
22
37. LEASE, including an under-lease or sub-lease and
any agreement to let or sub-let—
(a) where by such lease the rent is fixed and no
premium is paid or delivered—
(i) where the lease purports to be for a
term of less than one year;
(ii) where the lease purports to be for a
term of not less than one year but
not more than three years;
(iii) where the lease purports to be for a
term in excess of three years, but not
more than twenty years;
(iv) where the lease purports to be for a
term in excess of twenty years or in
perpetuity;
Two percent of the whole
amount payable or
deliverable under such lease.
Two percent of the amount
or value of the average
annual rent reserved.
Two percent of the
consideration equal to the
amount or value of the
average annual rent
reserved.
Two percent of the
consideration equal to the
whole amount of rents
which would be paid or
delivered in respect of the
first ten years of the lease.
23
(v) where the lease does not purport to
be for any definite term.
(b) (i) where the lease is granted for
money advanced and where no rent is
reserved;
(ii) where the lease is granted for a
fine or premium and where no rent is
reserved;
(c) (i) where the lease is granted for
money advanced in addition to rent
reserved;
Two percent of the
consideration equal to the
amount or value of the
average annual rent which
would be paid or delivered
for the first ten years, if the
lease continued so long.
Two percent of the
consideration equal to the
amount of such advanced
as set forth in the lease.
Two percent of the
consideration equal to the
amount of such fine or
premium as set forth in the
lease.
Two percent of the
consideration equal to the
amount of advance as set
forth in the lease, in
addition to the duty which
would have been payable
24
(ii) where the lease is granted for a
fine or premium in addition to rent
reserved.
on such lease, if no
advance had been paid or
delivered; provided that, in
any case when an
agreement to lease is
stamped with the ad
valorem stamp required for
a lease and a lease in
pursuance of such
agreement is subsequently
executed, the duty on such
lease shall not exceed four
rupees.
Two percent of the
consideration equal to the
amount of such fine or
premium as set forth in lease
in addition to the duty which
would have been payable on
such lease if no fine or
premium has been paid or
25
EXEMPTION:– Lease, executed in the case of a
cultivator and for the purposes of cultivation (including a
lease of trees for the production of food or drink) without
the payment or delivery of any fine or premium when a
definite term is expressed and such term does not
exceed one year, or when the average annual rent
reserved does not exceed one hundred rupees.
delivered: Provided that, in
any case when an
agreement to lease is
stamped with an ad valorem
stamped required for a lease
and a lease in pursuance of
such agreement is
subsequently executed, the
duty on such lease shall not
exceed one hundred rupees.
38. LETTER OF ALLOTMENT OF SHARES in any
company or proposed company or in respect of
any loan to be raised by any company or
proposed company.
Ten rupees
26
See also CERTIFICATE OR OTHER
DOCUMENT (No.21).
39. LETTER OF CREDIT, that is to say, any
instrument by which one person authorizes
another to give credit to the person in whose
favor it is drawn.
LETTER OF GUARANTEE, See AGREEMENT
(No.5).
40. LETTER OF LICENCE, that is to say, any
agreement between a debtor and his creditors,
that the letter shall, for a specified time, suspend
their claims and allow the debtor to carry on
business at his own discretion.
Fifty rupees
41. MEMORANDUM OF ASSOCIATION OF A
COMPANY—
(a) if accompanied by articles of association
under section 35 of the Companies Act,
2017 (XIX of 2017);
(b) If not so accompanied.
EXEMPTION:– Memorandum of any association not
formed for profit and registered under section 42 of the
Companies Act, 2017 (XIX of 2017).
One hundred rupees
Two hundred rupees.
27
42. MORTGAGE-DEED not being an AGREEMENT RELATING TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE (No.6), BOTTOMRY BOND (No.18), MORTGAGE OF A CROP (No.43),RESPONDENTIA BOND (No.58), OR SECURITY BOND (No.59)—
(a) when possession of the property or any
part of the property comprised in such
deed is given by the mortgagor or agreed
to be given;
(b) When possession is not given or agreed
to be given as aforesaid.
Explanation— A mortgagor who gives to the mortgagee
a power of attorney to collect rents or a lease of the
property mortgaged or part thereof, is deemed to give
possession within the meaning of this article.
Three percent of the
consideration equal to the
amount secured by such
deed.
Three percent of the
amount secured by such
deed.
28
(c) when a collateral or auxiliary or additional
or substituted security, or by way of
further assurance for the above-
mentioned purposes where the principal
or primary security is duly stamped—
for every sum secured not exceeding Rs.
1,000; and for every Rs. 1,000 or part
thereof secured in excess of Rs. 1,000
(d) (i) mortgage with banking companies
that is to say simple or legal mortgage for
banking companies or other financial
institution when the entire finance is not
based on interest.
(ii) in any other case
EXEMPTION:–
(1) Instruments, executed by persons taking
advances under the Land Improvement Loans
Act, 1883 (XIX of 1883), or the Agriculturists
Loans Act, 1884 (XII of 1884) or by their sureties
as security for the repayment of such advances.
(2) Letter of hypothecation accompanying a Bill of
Exchange.
Ten rupees.
One fifth of one percent
that is to say 0.2% of the
loan amount subject to a
maximum of one hundred
rupees.
One fifth of one percent
that is to say 0.2% of the
loan amount.
29
43. MORTGAGE OF A CROP, including any
instrument evidencing an agreement to secure
the repayment of a loan made upon any
mortgage of a crop, whether the crop is or is not
in existence at the time of mortgage—
(a) when the loan is repayable not more than
three months from the date of the
instrument, for every two hundred rupees or
part thereof of the sum secured.
(b) when the loan is repayable more than
three months, but not more than eighteen
months, from the date of the instrument,
for every one hundred rupees or part
thereof of the sum secured.
One rupee
Two rupees
44. NOTARIAL ACT, that is to say, any instrument,
endorsement, note, attestation, certificate or
entry not being a PROTEST (No.52) made or
signed by a Notary Public in the execution of the
duties of his office, or by any other person
lawfully acting as a Notary Public.
See also PROTEST OF BILL OR NOTE (No.52).
Ten rupees
30
45. NOTE OR MEMORANDUM SENT BY a broker
or agent to his principal intimating the purchase
or sale on account of such principal—
(a) of any goods exceeding in value twenty
rupees;
(b) of any stock or marketable security
exceeding in value twenty rupees, not
being a Government Security.
(c) of a Government security
Five Rupees
Five rupees for every Rs.
5,000 or a part thereof of
the value of the stock or
security.
One rupee for every 10,000
rupees or part thereof of
the value of the security
subject to a maximum of
forty rupees.
46. NOTE OF PROTEST BY THE MASTER OF A
SHIP.
See also PROTEST BY MASTER OF A SHIP (No.53).
ORDER FOR THE PAYMENT OF MONEY.
See BILL OF EXCHANGE (No.15).
Five rupees.
31
47. PARTITION—Instrument of [as defined by section
2(15)].
Explanation— The
largest share remaining
after the property is
partitioned (or if there are
two or more shares of
equal value and not smaller
than any of the other
shares, than one of such
equal shares) shall be
deemed to be that from
which other shares are
separated:
Provided always
that—
(a) when an instrument of
partition contain-ing an
agreement to divide
property in severalty is
executed and a partition is
effected in pursuance of
such agreement, the duty
chargeable upon the
32
instrument affecting such
parti-tion shall be reduced
by the amount of duty paid
in respect of the first instru-
ment but shall not be less
than four rupees;
(b) where land is held on
Revenue Settlement for a
period not exceeding thirty
years and paying the full
assessment, the value for
purpose of duty shall be
calculated at not more
than five times the annual
revenue;
(c) where a final order for
effecting a partition
passed by any Revenue
authority or any Civil
Court, or an award by an
arbitrator directing a
33
partition, is stamped with
the stamp required for an
instrument of partition in
pursuance of such order
or award is subsequently
executed the duty on
such instrument shall not
exceed four rupees.
48. PARTNERSHIP—
A—INSTRUMENT OF—
(a) where the capital of the partnership does
not exceed Rs. 500.
(b) in any other case
B—DISSOLUTION OF PAWN OR PLEDGE—
See AGREEMENT RELATING TO DEPOSIT OF
TITLE-DEEDS, PAWN OR PLEDGE (No. 6).
Two hundred rupees
One hundred rupees
Half of the stamp duty
payable on original.
34
49. POLICY OF INSURANCE—
A—See INSURANCE (see section 7)—
(1) For each voyage—
(i) where the premium of consideration
does not exceed the rate of 1/8 per
cent of the amount insured by the
policy for every full sum of Rs. 5,000
and also any fractional parts thereof
insured by the policy.
(ii) in any other case, in respect of
every full sum of Rs.2,000 and
also any fractional part thereof
insured by the policy.
(2) For time—
in respect of every full sum of Rs.2,000 or
part thereof insured by the policy—
(i) where the insurance shall be made
for any time not exceeding six
months;
(ii) where the insurance shall be made
for any time exceeding six months
If drawn
single
If drawn in
duplicate
for each
part
Three
rupees.
Three
rupees.
Three
rupees.
Five rupees.
Three
rupees.
Three
rupees.
Three
rupees.
Five rupees.
35
and not exceeding twelve months
B—FIRE—INSURANCE AND OTHER CLASSES OF
INSURANCE NOT ELSEWHERE INCLUDED IN THIS
ARTICLE, COVERING GOODS, MERCHANDISE,
PERSONAL EFFECTS, CROPS, AND OTHER
PROPERTY AGAINST LOSS OR DAMAGE—
(1) in respect of an original policy—
(i) when the sum insured does not
exceed Rs. 5,000;
(ii) in any other case and
(2) in respect of each receipt for any payment
of a premium on any renewal of an original
policy.
Five rupees.
Eight rupees.
One-half of the duty
payable in respect of the
original policy in addition to
the amount, if any,
chargeable under No. 55.
36
C —ACCIDENT AND SICKNESS INSURANCE—
(a) Against railway accident, valid for a single
journey only.
EXEMPTION
When issued to a passenger travelling by the
intermediate or the third class in any railway.
(b) In any other case for the maximum
amount which may become payable in
the case of any single accident or
sickness where such amount does not
exceed Rs. 2,000 and also where such
amount exceeds Rs. 2,000, for every Rs.
2,000 or part thereof.
D—INSURANCE BY WAY OF INDEMNITY—
Against liability to pay damages on account of accidents to
workmen employed by or under or against liability to pay
compensation under Workmen’s Compensation Act, 1923
(VIII of 1923), for every Rs. 100 or part thereof payable as
Three rupees
Three Rupees: Provided
that, in case of a policy of
insurance against death by
accident when the annual
premium payable does not
exceed Rs. 2.50 per Rs.
1,000 the duty on such
instrument shall be one
rupee for every Rs.1,000 or
part thereof o f the maximum
amount which may become
payable under it.
Three rupees if drawn
singly.
37
premium.
E—LIFE INSURANCE OR OTHER INSURANCE NOT
SPECIFICALLY PROVIDED FOR, except such a RE-
INSURANCE as is described in Division of this article—
(i) for every sum insured not exceeding Rs.250;
(ii) for every sum insured exceeding Rs.250 but
not exceeding Rs.500;
(iii) for every sum insured exceeding Rs.500 but
not exceeding Rs.1,000 and also for every
Rs.1,000 or part thereof in excess of
Rs.1,000.
EXEMPTIONS:–Policies of life insurance granted by the
Director-General of Post Offices in accordance with rules
for Postal Life Insurance issued under the authority of the
Central Government.
F—RE-INSURANCE BY AN INSURANCE COMPANY
WHICH HAS GRANTED A POLICY OF THE NATURE
SPECIFIED IN DIVISION A OR DIVISION B OF THIS
ARTICLE WITH ANOTHER COMPANY BY WAY OF
INDEMNITY OR GUARANTEE AGAINST THE
PAYMENT ON THE ORIGINAL INSURANCE OF A
CERTAIN PART OF THE SUM INSURED THEREBY.
GENERAL EXEMPTIONS:–Letter of cover or
If drawn
singly
If drawn in
duplicate,
for each
part
Three rupees
Three rupees
Three rupees
Three
rupees.
Three
rupees
Three
rupees
One-half of the duty
payable in respect of the
original insurance but not
less than three rupees or
more than eight rupee.
38
engagement to issue a policy of insurance: Provided
that, unless such letter or engagement bears the stamp
prescribed by this Act for such policy nothing shall be
claimable thereunder, nor shall it be available for any
purpose except to compel the delivery of the policy
therein mentioned.
50. POWER-OF-ATTORNEY as defined by section
2(21) of Stamps Act, 1899 (II of 1899), not being
a proxy (No.54)—
(a) when executed for the sole purpose of
procuring the registration of one or more
documents in relation to a single
transaction or for admitting execution of
one or more such document;
(b) when authorizing one person or more to act
in a single transaction other than the case
mentioned in clause (a);
(c) when authorizing not more than five
persons to act jointly and severally in more
than one transaction or generally;
Five Hundred rupees
One thousand rupees
One thousand rupees
39
(d) when authorizing more than five but not
more than ten persons to act jointly and
severally in more than one transaction or
generally;
(e) when given for consideration and
39 authorizing the attorney to sell any
immovable property.
(f) in any other case
Explanation 1— For the purposes of this Article more
persons than one when belonging to the
same firm shall be deemed to be one
person.
Explanation 2— The term “Registration” includes every
operation incidental to registration under the
Registration Act, 1908 (XVI of 1908).
One thousand rupees
One thousand rupees
One thousand rupees
40
51. PROMISSORY NOTE as defined by section
2(22) of Stamps Act, 1899 (II of 1899)—
(a) when payable on demand—
(i) when the amount or value does
not exceed Rs. 250.000;
(ii) when the amount or value
exceeds Rs. 250,000 but does not
exceed Rs. 500,000;
(iii) in any other case
(b) When payable otherwise than on
demand, including a commercial paper.
Thirty Rupees
Sixty Rupees
One Hundred rupees
One-fiftieth of one percent
that is to say 0.02% per
annum of the amount
payable subject to a
maximum of Rs. 100,000
52. PROTEST OF BILL OR NOTE, that is to say,
any declaration in writing made by a Notary
Public or other person lawfully acting as such,
attesting the 40dishonor of a Bill of Exchange for
promissory note.
Ten rupees
53. PROTEST BY THE MASTER OF A SHIP, that is
to say, any declaration of the particulars of her
voyage drawn up by him with a view to the
adjustment of losses or the calculation of
averages, and every declaration in writing made
Ten rupees
41
by him against the charterers or the consignees
or not loading or unloading the ship, such
declaration is attested or certified by a Notary
Public or other person lawfully acting as such.
See also NOTE OR PROTEST BY THE MASTER OF A
SHIP (No.46).
54. PROXY empowering any person to vote at any one
election of the members of a district or local board
or of a body of municipal commissioners, or at any
one meeting of (a) members of an incorporated
company or other body corporate whose stock or
funds is or are divided into shares and transferable;
(b) a local authority; or (c) proprietors, members or
contribution to the funds of any institution.
Five rupees
55. RECEIPTS as defined by section 2 (23) of Stamps
Act, 1899 (II of 1899) for any money or other
property the amount or value of which exceeds
twenty rupees—
(a) where the amount or value does not
exceed two thousand rupees;
(b) where the amount or value exceeds two
thousand rupees but does not exceed ten
thousand rupees;
(c) Where such amount exceeds ten
One rupee
Two rupee
Five rupee
42
thousand rupees.
EXEMPTIONS:–Receipts—
(a) endorsed on or contained in any
instrument duly stamped for any
instrument exempted under the proviso to
section 3 (instruments executed on behalf
of the Government) or any cheque or bill
of exchange, payable on demand
acknowledging the receipt of the
consideration money therein expressed,
or the receipt of any principal-money,
interest of annuity, or other periodical
payment thereby secured;
(b) for any payment of money without
consideration;
(c) for any payment of rent by a cultivator on
account of land assessed to Government
revenue;
(d) for pay or allowances by non-
commissioned or petty officers, soldiers,
sailors or airmen of the armed forces of
Pakistan/ Pakistan’s military, naval or air
forces, when serving in such capacity, or
by mounted police constables;
43
(e) given by holders of family certificates in
cases where the person from whose pay
or allowances the sum comprised in the
receipt has been assigned as a non-
commissioned or petty officer, soldier,
sailor or airman or any of the said forces
and serving in such capacity;
(f) for pensions or allowances by persons
receiving such pensions or allowances in
respect of their services as such, non-
commissioned or petty officers, soldiers,
sailors or airmen, and not serving the
State in any other capacity;
(g) given by a headman or lambardar for
land-revenue or taxes collected by him;
(h) given for money or securities for money
deposited in the hands of any banker to be
accounted for:
Provided that the same is not
expressed to be received of, or by the
hands of, any other than the person to
whom the same is to be accounted for:
Provided also that this exemption
shall not extend to receipt or
44
acknowledgment for any sum paid or
deposited for, or upon a letter of allotment
of a share, or in respect of a call upon any
scrip or share of, or in, any incorporated
company or other body corporate or such
proposed or intended company or body or
in respect of a debenture being a
marketable security.
See also POLICY OF INSURANCE [No. 49-B (2)].
56. RE-CONVEYANCE OF MORTGAGE
PROPERTY—
(a) if the consideration for which the property
was mortgaged does not exceed Rs.
1,000;
(b) in any other case
Thirty Rupees
One Hundred rupees
57. RELEASE,
(a) that is to say, any instrument [not being
such a release as is provided for by section
23A of Stamps Act, 1899 (II of 1899)]
whereby a person renounces a claim upon
another person or against any specified
property—
(b) in any other case
One Thousand Rupees.
One Thousand Rupees.
45
58. RESPONDENTIA BOND, that is to say, any
instrument securing a loan on the cargo laden or
to be laden on board a ship and making
repayment contingent on the arrival of the cargo
at the port of destination.
REVOCATION OF ARMY TRUST OR SETTLEMENT.
See SETTLEMENT (No.60),TRUST (No.66).
The same duty as on a
Bond (No.17) for the
amount of the loan secured.
59. SECURITY BOND OR MORTGAGE DEED executed by way of security for the due
execution of an office, or to account for money or
other property received by virtue thereof or
executed in favour of a Court for the due
discharge of a contingent liability or executed by a
surety to secure the due performance of a
contract—
(a) when the amount secured does not
exceed Rs. 1,000;
(b) in any other case
EXEMPTIONS:– Bond or other instrument, when
executed—
(a) by any person for the purpose of
guaranteeing that the local income
derived from private subscription to a
charitable dispensary or hospital or any
other object of public utility shall not be
less than a specified sum per mensum;
(b) under No. 3-A of the rules made by the
Provincial Government under section 70
Thirty rupees One hundred rupees
46
of the Sind Irrigation Act, 1879;
(c) executed by persons taking advances under
the Land Improvement, Loans Act, 1883
(XIX of 1883), or the Agriculturists Loans
Act, 1884 (XII of 1884), or by their sureties
as security for repayment of such advances;
(d) executed by servants of the State or their
securities to secure the due execution of
an office or the due accounting for money
or other property received by virtue
thereof.
60. SETTLEMENT—
A—Instrument of (including a deed of power)— (i) where the settlement is made in favor of
legal heirs in respect of agriculture land (ii) Where the settlement is made for a
religious or charitable purpose:
(iii) in any other case
Two percent of the value of
the property.
Two percent of the sum
equal to the amount or value
of the property settled.
Two percent of the
consideration equal to the
amount or value of the
property settled:
Provided that, where
an agreement to settle is
stamped with the stamp
required for an instrument of
settlement, and an
47
EXEMPTIONS:– Deed of dower executed on the
occasion of marriage between Muslims.
B—Revocation of—
See also TRUST (No.66)
instrument of settlement in
pursuance of such
agreement is subsequently
executed, the duty on such
instrument shall not exceed
four rupees:
Provided further that
where an instrument of
settlement contains any
provision for the revocation
of the settlement, the
amount or value of the
property settled shall, for the
purposes of duty, be
determined as if no such
provisions were contained in
the instrument.
Two percent of the
consideration equal to the
amount or value of the
property concerned as set
forth in the instrument of
revocation.
61. SHARE WARRANTS to bearer issued under the
Companies Act, 2017 (XIX of 2017).
One and a half times the
duty payable on a
Debenture [No.28 ] for a
consideration equal to the
nominal amount of the
48
EXEMPTIONS:–
Share warrant when issued by a company in pursuance
of the Companies Act, 2017 (XIX of 2017), to have
effect only upon payment, as composition for that duty,
to the Collector of Stamp revenue of—
(a) one and a half per centum of the whole
subscribed capital of the company; or
(b) if any company which has paid the said
duty or composition in full subsequently
issues an addition to its subscribed
capital—one and half per centum of the
additional capital so issued.
SCRIP—See CERTIFICATE (No.21).
shares specified in the
warrant.
62. SHIPPING ORDER for or relating to the
conveyance of goods on board of any vessel.
Five rupees
63. SURRENDER OF LEASE—
49
(a) when the duty with which the lease is
chargeable does not exceed thirty rupees;
(b) in any other case
EXEMPTION:–
Surrender of lease, when such lease exempted from
duty.
The duty with which lease
is chargeable.
One hundred rupees
64. TRANSFER (whether with or without
consideration)—
(a) of shares in an incorporated company or
other body corporate;
(b) of Debenture or Participation Term
Certificate or Term Finance Certificate or
any other instrument or redeemable
capital (other than Commercial Paper),
whether mortgaged or not, being a
transferable security, whether liable to
duty or not except as provided for by
section 8
(c) of any interest secured by a bond,
One-fourth of the duty
payable on a Conveyance
(No.24) for a consideration
equal to the value of the
share.
One tenth of one percent
that is to say 0.1% of the
face value of the instrument.
50
mortgage-deed or policy of insurance—
(i) if the duty on such bond,
mortgage-deed or policy does not
exceed twenty rupees;
(ii) in any other case
(d) of any property under the Administrator-
General’s Act, 1913, (III of 1913) section
31;
(e) of any trust-property without consideration
from one trustee to another trustee or from
a trustee to a beneficiary.
EXEMPTIONS:–
Transfers by endorsement—
(a) of a bill of exchange, cheque or promissory
note;
(b) of a bill of lading, delivery order, warrant
for goods, or other mercantile document
of title to goods;
(c) of a policy of insurance;
(d) of securities of the Federal Government.
See also section 8—
The duty with which such
bond, mortgage-deed or
policy of insurance is
chargeable.
Fifty rupees.
Fifty rupees.
Twenty rupees or such
smaller amount as may be
chargeable under clauses
(a) to (c) of this Article.
65. TRANSFER OF LEASE by way of assignment
and not by way of under-lease.
The same duty as is leviable
on Conveyance (No.24) for
51
EXEMPTION:–Transfer of any lease exempt from duty.
a consideration equal to the
amount of the consideration
for the transfer.
66. TRUST—
A. Declaration of - of or concerning any
property when made by any writing not
being a WILL.
B. Revocation of—of, or concerning any
property when made by any instrument
other than a WILL.
The same duty as on a
Bond (No.17) for a sum
equal to the amount or
value of the property
concerned as set forth in
the instrument but not
exceeding two hundred
rupees
The same duty as on a
Bond (No.17) for a sum
equal to the amount of
value of the property
concerned as set forth in
the instrument but not
exceeding two hundred
52
See also SETTLEMENT (No.60).
VALUATION. See APPRAISEMENT (No.8).
rupees.
67. WARRANT FOR GOODS, that is to say, any
instrument evidencing the title of any person therein
named, or his assigns, or the holder thereof, to the
property in any goods lying in or upon any dock,
warehouse or wharf, such instrument being signed or
certified by or on behalf of the person in whose custody
such goods may be.
Five rupees
3 Amendment of the West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. ACT
No. XXXII of 1958). – In the West Pakistan Motor Vehicles Taxation Act, 1958 (W.P. Act
No. XXXII of 1958), as in force in the Islamabad Capital Territory, for the Schedule, the
following shall be substituted, namely:-
"Schedule
[See section 3]
TABLE 1
S. No. CATEGORY TAX RATES FOR ICT Rs.
(1) (2) (3)
TOKEN TAX (Motor Cycle and Scooter)
1. Motor Cycle and Scooter Upto 200 cc 1,000 (lifetime)
53
2. Motor Cycle and Scooter from 201 cc to 400
cc 2000 (lifetime)
3. Motor Cycle and Scooter from 401 and above 5000 (lifetime)
Provided that quarterly rates under section 3 shall not be applicable to lifetime tax.
TABLE 2
Sr. No. CATEGORY TAX RATES
FOR ICT Rs. Period
(1) (2) (3) (4)
TOKEN TAX (Motor Vehicles)
Engine capacity upto 1000 CC 10,000 Lifetime Provided
that quarterly rate
under section 3 shall
not be applicable to
lifetime tax.
4. Engine capacity from 1001 to 1300
cc
1,500 per annum
5. Engine capacity from 1301 to 1500
cc
4,000 per annum
6. Engine capacity from 1501 to 2000
cc
5,000 per annum
7. Engine capacity from 2001 to 2500
cc
8,000 per annum
8. Engine capacity from 2501 and 12,000 per annum
54
above
TABLE 3
MOTOR CABS UPTO 6 SEATS
S.No. CATEGORY TAX RATES FOR ICT Rs.
(1) (2) (3)
9 Engine capacity upto 1000 CC 600 per annum
10 Engine capacity upto 1001 and above 1000 per annum
TABLE 4
PUBLIC SERVICE VEHICLE
S.No. Category Tax rates of for ICT in
Rupees
(1) (2) (3)
11. Vehicle (8 seater) 200 per seat per annum
12. Vehicle (13 seater) 250 per seat per annum
13. Vehicle (15 seater) 300 per seat per annum
14. Vehicle (16 seater) 300 per seat per annum
15. Vehicle (42 seater) 400 per seat per annum
16. Vehicle (52 seater) 500 per seat per annum
TABLE 5
COMMERCIAL VEHICLES AND LOADING VEHICLES
S.No. Category Tax rates of for ICT in
Rupees
(1) (2) (3)
17. Vehicles not exceeding 1250 KG in laden 500 per annum
55
weight
18. Vehicles with maximum laden capacity
exceeding 1250 KG but not exceeding 2030
KG
800 per annum
19. Vehicles with maximum laden capacity
exceeding 2030 KG but not exceeding 4060
KG
2,000 per annum
20. Vehicles with maximum laden capacity
exceeding 4060 KG but not exceeding 6090
KG
3,000 per annum
21. Vehicles with maximum laden capacity
exceeding 6090 KG but not exceeding 8120
KG
3,500 per annum
22. Vehicles with maximum laden capacity
exceeding 8120 KG
4,000 per annum
4 Amendment of West Pakistan Finance Act, 1964 (W.P. Act No. XXXIV of 1964).
– In the West Pakistan Finance Act, 1964 (W. P. Act No. XXXIV of 1964) as in force in the
Islamabad Capital Territory, –
(a) for section 11, the following shall be substituted, namely:–
"11. Tax on trades, professions, callings and employments.– There shall
be levied and collected from the persons and companies of the categories
specified in column (2) of the Seventh Schedule per annum, a professional
tax at the rate as specified in column (3) of that Schedule in the prescribed
manner."; and
56
(b) for the Seventh Schedule, the following shall be substituted, namely;-
“Seventh Schedule
[See section 11]
S. No. Categories
Rates of tax per
annum in ICT in
Rupees
(1) (2) (3)
1. Companies registered under the Companies Act 2017
having;
a. Capital Upto PKR 5 million but not exceeding PKR 10
million
7,000
b. Capital exceeding PKR 5 million but not exceeding PKR
50 million
18,000
c. Capital exceeding PKR 50 million but not exceeding PKR
100 million
35,000
d. Capital exceeding PKR 100 million but not
exceeding PKR 200 million
80,000
e. Capital exceeding PKR 200 million 90,000
f. Employees not exceeding 10 1000
g. Employees exceeding 10 but not exceeding 25 2,000
h. Employees exceeding 25 5,000
2. Lawyers 1,000
3. Members of Stock Exchanges 5,000
4. Money Changer 3,000
57
5. Motorcycle Dealers 5,000
6. Motor Car Dealers and Real Estate Agents 10,000
7. Health Clubs, Gymnasiums & Others 5,000
8. Recruiting Agents 10,000
9. Jewellers, Departmental Stores, Electronic Goods
Stores, Cable Operators, Printing Presses and Pesticide
Dealers
1,000
10. Tobacco Vendors - Wholesalers 2,000
11. Medical consultants or specialists/dental surgeons 5,000
12. Registered medical practitioners 2,000
13. others 1,000.".
5 Amendment of West Pakistan Finance Act, 1965 (W.P. ACT No. I of 1965). – In
the West Pakistan Finance Act, 1965 (I of 1965), as in force in the Islamabad Capital
Territory, in section 12, for sub-section (1), the following shall be substituted, namely:-
“(1) There shall be levied and collected in prescribed manner from all the
hotels, having at least twenty-five lodging units, a bed tax at the rate of five percent
of the invoice or bill excluding sales tax and other applicable taxes”.
6 Amendments of Customs Act, 1969 (IV of 1969).- In the Customs Act, 1969 (IV of
1969), the following further amendments shall be made, namely:-
(1) in section 2,-
(a) after omitted clause (ib), the following new clause shall be inserted,
namely,-
58
“(ic) “Customs controls” means measures applied by the officers of
customs or through Customs Computerized System to manage
risks and ensure compliance;”;
(b) after clause (qa), the following new clause shall be inserted, namely,-
“(qb) “Risk Management System” means the systematic application
of Customs Controls and Management Procedures on pre-
arrival, Customs clearance processes and post clearance of
goods and passengers, for identifying, analyzing, evaluating,
monitoring, reviewing and treating the risk associated with
them;”; and
(c) after clause (rr), the following new clause shall be inserted; namely,-
“(rrr) “Selectivity Criteria” means the risk parameters determined by
the Risk Management Committee constituted under the rules for
the application of Risk Management System;”;
(2) in section 3E, for the word “Directorates” wherever occurring, the expression
“Directorates General and Directorates,” shall be substituted;
(3) in section 18D, for the words “Federal Government”, the expression “Board,
with approval of the Federal Minister-in-charge” shall be substituted;
(4) in section 19, the expression “removal of anomalies in duties, development of
backward areas,” shall be omitted;
(5) in section 25A,-
(a) in sub-section (1), the expression “the Collector of Customs on his
motion, or” shall be omitted;
(b) sub-section (3) shall be omitted; and
59
(c) in sub-section (4), the expression “or, as the case may be, under sub-
section (3),” shall be omitted;
(6) in section 30, in the fifth proviso, for the words “Federal Government”, the
expression “Board, with approval of the Federal Minister-in-charge” shall be
substituted;
(7) in section 30A, in the second proviso, for the words “Federal Government”,
the expression “Board, with approval of the Federal Minister-in-charge” shall
be substituted;
(8) in section 31, in the second proviso, for the words “Federal Government”, the
expression “Board, with approval of the Federal Minister-in-charge” shall be
substituted;
(9) in section 32, in sub-section (3A),-
(i) after the word “importer’s”, the words “or exporter’s” shall be inserted;
(ii) after the word “importer”, the words “or exporter” shall be inserted; and
(iii) after the word “imported”, the words “or exported” shall be inserted;
(10) in section 32B, after the word “Collector”, the words “or Director” shall be
inserted;
(11) after section 32B, the following new section shall be inserted, namely:-
“32C. Mis-declaration of value for illegal transfer of funds
abroad.- Without prejudice to any action that may be taken under this Act or
any other law for the time being in force, if any person overstates the value of
imported goods or understates the value of exported goods or vice versa,
such person shall be served with a notice within a period of two months from
60
the seizure of goods to show cause as to why such goods may not be
confiscated.”;
(12) in section 33,-
(a) in sub-section (3A), after the word “of”, occuring for the first time, the
expression “subject to pre-audit” shall be inserted; and
(b) after sub-section (4), the following new sub-section shall be inserted,
namely:-
“(5) For the purpose of this section, the Board may, by
notification in the official Gazette, specify the jurisdiction and powers of
the officers of Customs to sanction refund in terms of amount of
Customs duty and other taxes involved.”;
(13) in section 79, in sub-section (1), for the word “fifteen”, the word “ten” shall be
substituted;
(14) after omitted section 80A, the following new section shall be inserted,
namely:-
“80AA. Application of risk management system.- For the purpose
of enforcing Customs Controls, risk management system shall be used in
such manner as may be prescribed by rules.”;
(15) in section 81, after the figure “79”, the expression “or 131” shall be inserted;
(16) in section 82,-
(a) for the word “twenty”, occurring twice, the word “fifteen” shall be
substituted; and
(b) for word “ten” the word “five” shall be substituted;
(17) in section 90,-
61
(a) in sub-section (2), for the full stop at the end, a colon shall be
substituted and thereafter the following proviso shall be added,
namely:-
“Provided that where the Customs Computerized system is
operational, the issuance of warrant and subsequent transfer of
warrant shall take place through system generated documents.”; and
(b) after sub-section (3), the following new sub-section shall be added,
namely:-
“(4) The Board may make rules to regulate the transfer of
goods in the manner as mentioned in sub-section (2).”;
(18) in section 98,-
(i) in sub-section (1),-
(a) for the word “three”, the word “one” shall be substituted;
(b) in the proviso,-
(i) in clause (a), after the semicolon, the word “and” shall
be added; and
(ii) for clause (b), the following shall be substituted,
namely:-
“(b) by the Chief Collector of Customs for such period
as he may deem fit.”; and
(c) clause (c) shall be omitted; and
(ii) in sub-section (3), after the words “Federal Government”, the word “or
Board” shall be inserted;
62
(19) in section 155A, for the words “Federal Government”, the word “Board” shall
be substituted;
(20) in section 156, in sub-section (1), in the TABLE, in the zero column,-
(a) for clause 14 and entries relating thereto in columns (1), (2) and (3),
the following new clause and entries related thereto shall be
substituted, namely:-
“14 If any person
commits an
offence under
(i) sub-section (1) or sub-section (2) of section 32;
such person shall be liable to a
penalty not exceeding two
hundred thousand rupees or
three times the value of the
goods in respect of which such
offence is committed,
whichever be greater; and
such goods shall also be liable
to confiscation; and upon
conviction by a Special Judge
he shall further be liable to
imprisonment for a term not
exceeding three years, or to
fine, or to both;
32
63
(ii) sub-section (3)
or sub-section
(3A) of section
32,
such person shall be liable to a
penalty not exceeding fifty
thousand rupees or two times
the value of the goods in
respect of which such offence
is committed, whichever be
greater.
32”;
(b) after clause 14A and entries relating thereto in columns (1), (2) and
(3), the following new clause and entries related thereto shall be
inserted, namely:-
“14B If any person
commits an
offence under
section 32C,
Such person shall be liable to
penalty not exceeding two
hundred thousand rupees or
three times the value of goods
in respect of which such
offence is committed
whichever is greater; and such
goods shall also be liable to
confiscation; and upon
conviction by a special judge
he shall further be liable to
imprisonment for a term not
exceeding ten years and to a
32C”
;
64
fine which may extend upto
one million rupees; and shall
also be liable to forfeiture of
property involved in money
laundering or property of
corresponding value in
accordance with the
provisions of the Anti-Money
Laundering Act, 2010 (XIV of
2010).
(c) for clause 47A and entries relating thereto in columns (1), (2) and (3),
the following new clause and entries related thereto shall be
substituted, namely:-
“47A If the goods
declaration is not
filed within the
prescribed period
of ten days,
The owner of such goods
shall be liable to a penalty at
the rate of rupees five
thousand per day for the
initial five days of default and
at the rate of rupees ten
thousand per day for each day
of default thereafter.
79”;
(21) after section 156, the following new section shall be inserted, namely:-
“156A. Proceedings against persons.- (1) Subject to section 217,
the Board shall prescribe rules for initiating criminal proceedings against any
65
authority mentioned in sections 3 to 3DDD, including any person subordinate
to the aforesaid authority, who willfully and deliberately commits or omits an
act which results in personal benefits and undue advantage to the authority or
the person or taxpayer or both.
(2) Where proceedings under sub section (1) have been initiated
against a person or authority, the Board shall simultaneously intimate the
relevant Government agency to initiate criminal proceedings against the
taxpayer.
(3) The proceedings under this section shall be without prejudice
to any liability that the authority, person or taxpayer may incur under any
other law for the time being in force.
(22) in section 179,-
(a) in sub-section (1),-
(i) clause (iv) shall be omitted;
(ii) in clause (v), for the word “fifty” the words “one hundred” shall
be substituted; and
(iii) in clause (vi), for the word, “fifty” the words “one hundred” shall
be substituted;
(b) in sub-section (3), for the words “one hundred and twenty”, the word
“ninety” shall be substituted;
(23) in section 181, in second proviso, after the figure “16”, the words “or in
violation of any other provisions of this Act” shall be inserted;
(24) in section 185,-
66
(a) in sub-section (1), for the words “Federal Government”, the expression
“Prime Minister, in consultation with the Chief Justice of the concerned
High Court,” shall be substituted; and
(b) in sub-section (3), for the words “Federal Government”, the expression
“Prime Minister, in consultation with the Chief Justice of the concerned
High Court,” shall be substituted;
(25) in section 185D, in sub-section (1), for the words “Federal Government”,
wherever occurring, the words “Prime Minister” shall be substituted;
(26) in section 193, in sub-section (1), after the figure “80”, the expression “,131”
shall be inserted;
(27) in section 193A, in sub-section (3), for the words “one hundred and twenty”,
the word “ninety” shall be substituted;
(28) for section 194, the following shall be substituted, namely:-
“194. Appellate Tribunal.- (1) There shall be established an
Appellate Tribunal to be called the Customs Appellate Tribunal to exercise
the powers and perform the functions conferred on the Appellate Tribunal by
this Act.
(2) The Appellate Tribunal shall consist of a chairman and such
other judicial and accountant members as are appointed by the Prime
Minister having regards to the needs of the Tribunal.
(3) No person shall be appointed as a judicial member of the
Appellate Tribunal unless such person-
(a) has been a judge of a High Court;
67
(b) has exercised the powers of a District Judge and is
qualified to be a judge of the High Court; or
(c) is or has been an advocate of a High Court and is
qualified to be appointed as a judge of a High Court:
Provided that the person who is or has been an
advocate of High Court shall not be appointed as judicial
member unless selected in accordance with the Civil Servants
Act, 1973 (LXXI of 1973) and the Federal Public Service
Commission Ordinance, 1977 (XLV of 1977).
(4) No person shall be appointed as a technical member of an
Appellate Tribunal unless such person-
(a) is an officer of Pakistan Customs Service equivalent in
rank to the Member of the Board or Chief Collector of
Customs or Director General; or
(b) is a Collector or Director or Chief of the Board having at
least three years experience in that position.
(5) The Prime Minister shall appoint one of the Members of the
Appellate Tribunal to be the chairman thereof.
(6) The terms and conditions of appointment of the chairman and
judicial and technical members shall be as such as the Prime Minister may
determine:
Provided that the appointment of a technical member shall be
for a period of two years.”;
(29) in section 195,-
68
(a) in the marginal heading, after the word “Collector”, the words “ or Chief
Collector” shall be inserted;
(b) in sub-section (1), for the expression “Collector of Customs
(Adjudication)”, the words “Chief Collector” shall be substituted; and
(c) after sub-section (2), the following new sub-section shall be added,
namely:-
“(3) The cases records of which are called and examined
under sub-section (1) shall be decided within a period of one twenty
days further extendable by the Board for another sixty days subject to
recording of reasons in writing.”;
(30) for section 195C, the following shall be substituted, namely:-
“195C. Alternative dispute resolution (ADR).- (1) Notwithstanding
anything contained in this Act, or the rules made there under, any aggrieved
person, in connection with any dispute pertaining to liability of customs-duty,
admissibility of refund or rebate, waiver or fixation of penalty or fine,
confiscation of goods, relaxation of any time period or procedural and
technical condition which is under litigation in any court of law or an appellate
authority, except in the cases where first information reports (FIRs) have
been lodged or criminal proceedings have been initiated or where
interpretation of question of law having larger revenue impact in the opinion of
the Board is involved, may apply to the Board for the appointment of a
committee for the resolution of dispute in appeal.
69
(2) The Board may, subject to the provisions of sub-section (1),
after examination of the application of an aggrieved person, appoint a
committee, within sixty days of receipt of such application, consisting of-
(a) an officer of customs not below the rank of Chief Collector;
(b) a person to be nominated by the applicant from a panel notified
by the Board, comprising-
(i) senior chartered accountants and senior advocates
having minimum ten years experience in the field of
taxation; and
(ii) reputable businessmen as nominated by Chambers of
Commerce and Industry:
Provided that the taxpayer shall not nominate a
chartered accountant or an advocate if the said
chartered accountant or the advocate is or has been an
auditor or an authorized representative of the taxpayer;
and
(iii) a retired judge not below the rank of District and
Sessions Judge, to be nominated through consensus by
the members appointed under clauses (i) and (ii).
(3) The aggrieved person or the concerned Collector or both, as
the case may, shall withdraw the appeal pending before any court of law or
an appellate authority, after constitution of the committee by the Board under
sub-section (2).
70
(4) The committee shall not commence the proceedings under
sub-section (5) unless the order of withdrawal by the appellate authority is
communicated to the Board:
Provided that if the order of withdrawal is not communicated
within seventy-five days of the appointment of the committee, the said
committee shall be dissolved and provision of this section shall not
apply.
(5) The committee constituted under sub-section (2) shall examine
the issue and may, if it deems necessary, conduct inquiry, seek expert
opinion, direct any officer of customs or any other person to conduct an audit
and shall decide the dispute by majority, within ninety days of its constitution
in respect of the resolution of dispute as it deem fit:
Provided that in computing the aforesaid period of one hundred
and twenty days, the period, if any, for communicating the order of
withdrawal under sub-section (4) shall be excluded.
(6) The recovery of duties and taxes payable by the applicant in
connection with any dispute for which a committee has been appointed under
sub-section (2) shall be deemed to have been stayed on withdrawal of appeal
upto the date of decision by the committee.
(7) The decision of the committee under sub-section (5) shall be
binding on the Collector and the aggrieved person.
(8) If the committee fails to make recommendations within a
stipulated period of ninety days under sub-section (5), the Board shall
dissolve the committee by an order in writing and the matter shall be decided
by the appellate authority which issued the order of withdrawal under sub-
71
section (4) and the appeal shall be treated to be pending before such
appellate authority as if the appeal had never been withdrawn.
(9) The Board shall communicate the order of dissolution to the
court of law or the appellate authority and the Collector and the aggrieved
person.
(10) The aggrieved person, on receipt of the order of dissolution,
shall communicate the order to the appellate authority, which shall decide the
appeal within six months of the communication of the said order.
(11) The aggrieved person may make payment of customs duty and
other taxes as determined by the committee under sub-section (6) and all
decisions, orders and judgments made or passed shall stand modified to that
extent.
(12) The Board may prescribe the amount to be paid as
remuneration for the services of the members of the committee, other than
the member appointed under clause (a) of sub-section (2).
(13) The Board may, by notification in the official Gazette make
rules for carrying out the purposes of this section, including the procedures
and manner of conducting of ADR committee meetings.”;
(31) in section 200, in the proviso, after the word “importer”, the words “or
exporter” shall be inserted;
(32) in section 202, for the expression “,Central Excise and Sales Tax” and the
expression “,Central Excise or Sales Tax”, wherever appearing, the words “
or Inland Revenue” shall be substituted;
72
(33) in section 203, after the word “fees”, occurring at the end, the words “as
provided under the rules prescribed by the Board” shall be inserted;
(34) in section 212A, in sub-section (2), the words “with approval of Federal
Government” shall be omitted;
(35) the amendments set out in the First Schedule to this Act shall be made in the
First Schedule to the Customs Act, 1969 (IV of 1969);
(36) the Fifth Schedule to the Customs Act (IV of 1969) shall be substituted in the
manner provided for in the Second Schedule to this Act.
7 Amendment of the Port Qasim Authority Act, 1973 (XLIII of 1973). - In the Port
Qasim Authority Act, 1973 (XLIII of 1973), -
(a) after section 56, the following new section shall be inserted, namely:-
“56A. Surplus to be remitted to Federal Consolidated Fund.- Any
surplus of receipts over the actual expenditure in a year, after payment of tax,
shall be remitted to the Federal Consolidated Fund (FCF) and any deficit from
the actual expenditure shall be made up by the Federal Government to the
extent of funds deposited in FCF.” ; and
(b) after section 60, the following new section shall be inserted namely:-
“60A. Fines and penalties to be credited to the Federal
Consolidated Fund.- All fines and penalties recovered by the Authority shall
be credited to the Federal Consolidated Fund.”
8 Amendment of the Abandoned Properties (Management) Act, 1975 (XX of
1975).- In the Abandoned Properties (Management) Act, 1975 (XX of 1975), -
(a) in section 16, in sub-section (2), clause (k) shall be omitted;
(b) in section 19,-
73
in sub-section (1), after the expression “thereof”, the expression “Any surplus
of receipts over the actual expenditure in a year shall be remitted to the
Federal Consolidated Fund.” shall be added; and
(c) in section 29,- the existing provision thereof shall be renumbered as sub-
section (1) thereof and thereafter the following new sub-section (2) shall be
added, namely:-
“(2) The sale proceeds of abandoned property, including the amounts
already received, shall be deposited in the Federal Consolidated Fund:
Provided that the deposited amounts shall in the prescribed manner
be refunded in the light of any court order, international settlement, etc.”
9 Amendment of the Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of
1982).- In the Pakistan Civil Aviation Authority Ordinance, 1982 (XXX of 1982), after section
15, the following new section shall be inserted, namely:-
“15A. Surplus to be remitted to Federal Consolidated Fund.- Any surplus
of receipts over the actual expenditure in a year, after payment of tax, shall be
remitted to the Federal Consolidated Fund (FCF) and any deficit from the actual
expenditure shall be made up by the Federal Government to the extent of funds
deposited in FCF.”
10 Amendment of the National Database and Registration Authority Ordinance,
2000 (VIII of 2000). - In the National Database and Registration Authority Ordinance, 2000
(VIII of 2000).-
(a) after section 26, the following new section shall be inserted, namely:-
"26A. Surplus to be remitted to Federal Consolidated Fund.- Any
surplus of receipts over the actual expenditure in a year, after payment of
tax, shall be remitted to the Federal Consolidated Fund (FCF) and any
74
deficit from the actual expenditure shall be made up by the Federal
Government to the extent of funds deposited in FCF." ;and
(b) after section 30, the following new section shall be inserted, namely;
“30A. Fines and penalties to be credited to the Federal
Consolidated Fund.- All fines and penalties recovered by the Authority
shall be credited to the Federal Consolidated Fund.”
11 Amendments of the Sales Tax Act, 1990.— In the Sales Tax Act, 1990, the
following further amendments shall be made, namely:-
(1) in section 2,–
(a) for clause (5AB), the following shall be substituted, namely:–
“(5AB) “cottage industry” means a manufacturing concern, which fulfils
each of following conditions, namely:−
(a) does not have an industrial gas or electricity connection;
(b) is located in a residential area;
(c) does not have a total labour force of more than ten workers;
and
(d) annual turnover from all supplies does not exceed two million
rupees;”;
(b) in clause (11A),−
(i) the expression “(Private)” shall be omitted; and
(ii) for the expression “Companies Ordinance, 1984 (XLVII of
1984)”, the expression “Companies Act, 2017 (XIX of 2017)”
shall be substituted;
(c) in clause (27), after the word “manufacturer”, the expression “or
importer, in case of imported goods” shall be inserted;
75
(d) in clause (33), in the proviso, for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge,” shall
be substituted;
(e) in clause (43), for the words “Federal Government”, the expression
“Board, with the approval of the Minister-in-charge,” shall be
substituted;
(f) in clause (43A),–
(i) in sub-clause (c), the word “and” at the end shall be omitted;
and
(ii) in sub-clause (d), after the semi-colon at the end, the word
“and” shall be inserted, and thereafter the following new clause
(e) shall be added, namely:–
“(e) a retailer, whose shop measures one thousand square
feet in area or more.”; and
(g) in clause (46), −
(i) in sub-clause (d), after the word “goods”, the expression
“excluding those as specified in the Third Schedule” shall be
inserted;
(ii) in sub-clause (e), the word “and” at the end shall be omitted;
(iii) for clause (f), the following shall be substituted, namely:−
“(f) in case of manufacture of goods belonging to another
person, the actual consideration received by the manufacturer
for the value addition carried out in relation to such goods;”;
and
76
(iv) after clause (g), the following new clauses shall be added,
namely:−
“(h) in case of supply of electricity by an independent power
producer, the amount received on account of energy purchase
price only; and the amount received on account of capacity
purchase price, energy purchase price premium, excess bonus,
supplemental charges etc. shall not be included in the value of
supply; and
(i) in case of supply of electric power and gas by a
distribution company, the total amount billed including price of
electricity and natural gas, as the case may be, charges, rents,
commissions and all duties and taxes local, provincial and
federal but excluding the amount of late payment surcharge
and the amount of sales tax;”;
(2) in section 3,–
(a) for sub-section (1B), the following shall be substituted, namely:−
“(1B) On the goods specified in the Tenth Schedule, in lieu of levying
and collecting tax under sub-section (1), the tax shall be levied and
collected, in the mode and manner specified therein−
(a) on the production capacity of plants, machinery, undertaking,
establishments or installation producing on manufacturing such
goods; or
(b) on fixed basis, from any person who is in a position to collect
such tax due to the nature of the business,
77
and different rates may be so prescribed for different regions or
areas.”;
(b) in sub-section (2), in clause (a),−
(i) after the word “supplies”, occurring for the first time, the words
“and import of goods” shall be inserted;
(ii) after the word “supplies”, occurring for the second time, the
words “or imports” shall be inserted;
(iii) after the word “manufacturer”, the expression “, or the importer,
in case of imported goods,”shall be inserted; and
(iv) in the proviso, after the word “supply”, occurring twice, the
words “or import” shall be inserted;
(c) in sub-section (3A), for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge,” shall
be substituted;
(d) for sub-section (7), the following shall be substituted, namely:−
“(7) The tax shall be withheld by the buyer at the rate as specified
in the Eleventh Schedule, by any person or class of persons as
withholding agent for the purpose of depositing the same, in such
manner and subject to such conditions or restrictions as the Board
may prescribe in this behalf through a notification in the official
Gazette.“;
(e) in sub-section (9),−
(i) after the word “retailers”, the expression “, other than those
falling in Tier-1,” shall be inserted;
78
(ii) for the expression “subject to the exclusions, procedure,
restrictions and limitations as prescribed in Chapter II of the
Sales Tax Special Procedure Rules, 2007”, the expression
“and the electricity supplier shall deposit the amount so
collected directly without adjusting against his input tax” shall
be substituted; and
(iii) in the proviso, for full stop at the end, a colon shall be
substituted and thereafter the following new proviso shall be
added, namely:−
“Provided further that the Commissioner of Inland
Revenue having jurisdiction shall issue order to the electricity
supplier regarding exclusion of a person who is either a Tier-1
retailer, or not a retailer.”; and
(f) for sub-section (9A), the following shall be substituted, namely:−
“(9A) Notwithstanding anything contained in this Act, Tier-1
retailers shall pay sales tax at the rate as applicable to the goods sold
under relevant provisions of this Act or a notification issued there
under:
Provided that the customers of a Tier-1 retailer shall be entitled
to receive a cash back of up to five percent of the tax involved, from
such date in the manner and to the extent, as may be prescribed by
the Board.”;
(3) in section 4,−
(a) for clause (c), the following shall be substituted, namely:−
79
“(c) such other goods, as the Federal Government may specify by
notification in the official Gazette, whenever circumstances exist to
take immediate action for the purposes of national security, natural
disaster, national food security in emergency situations and
implementation of bilateral and multilateral agreements:”; and
(b) clause (d) shall be omitted;
(4) in section 7,–
(a) in sub-section (2), in clause (i), for the words “for which a return is
furnished”, the expression “, or in case of supply of electricity or gas, a
bill bearing his registration number and the address where the
connection is installed” shall be substituted; and
(b) in sub-section (3), for the words “Federal Government”, the word
“Board, with the approval of the Minister-in-charge,” shall be
substituted;
(5) in section 7A, for sub-section (2), the following shall be substituted, namely:−
“(2) Notwithstanding anything contained in this Act or the rules
made thereunder, in respect of the goods or class of goods specified in the
Twelfth Schedule, the minimum value addition tax, against the value added
by the registered person, shall be payable, at the rate and by the registered
persons or class of registered persons, specified therein, subject to the
conditions, limitations, restrictions and procedure specified therein:
Provided that the Federal Government may, through a notification
published in the official Gazette, amend any provision of the said Twelfth
Schedule.”;
(6) in section 8,–
80
(a) in sub-section (1), for clause (m), the following shall be substituted,
namely:−
“(m) the input goods attributable to supplies made to un-registered
person, on pro-rata basis, for which sale invoices do not bear the NIC
number of the buyer.”; and
(b) in sub-section (6), for the words “Federal Government”, the expression
“Board, with the approval of the Minister-in-charge,” shall be
substituted;
(7) in section 8B, in the second proviso, after the expression “sub-section (1)”,
the expression “and may also in the like manner relax the aforesaid limit to
ninety-five per cent” shall be inserted;
(8) in section 10, in sub-section (1), in the second proviso, for the words “along
with duty drawback at the rates”, the words “at the fixed rates and in the
manner as” shall be substituted;
(9) in section 13, in sub-section (2), for clause (a), the following shall be
substituted, namely:−
“(a) the Federal Government may, whenever circumstances exist to
take immediate action for the purposes of national security, natural disaster,
national food security in emergency situations and implementation of bilateral
and multilateral agreements, by notification in the official Gazette, exempt any
supplies made or imports, of any goods or class of goods from the whole or
any part of the tax chargeable under this Act, subject to the conditions and
limitations specified therein;”;
(10) in section 23, in sub-section (1),–
81
(a) after the word “particulars”, the expression “, in Urdu or English
language,” shall be inserted;
(b) in clause (b), after the word “number”, the expression “, or in case of
supplies to unregistered person, NIC number,” shall be inserted; and
(c) in clause (d), after the word “description”, the expression “, including
count, denier and construction in case of textile yarn and fabric,” shall
be inserted;
(11) in section 25, in sub-section (2), in second proviso, for the colon at the end, a
full stop shall be substituted and the third proviso thereafter shall be omitted;
(12) in section 26, in sub-section (3), for the full stop at the end, a colon shall be
substituted and thereafter the following proviso shall be added, namely:–
“Provided that the approval under this sub-section shall not be
required if revised return is filed within sixty days of filing of return and either
the tax payable therein is more than the amount paid or the refund claimed
therein is less than the amount as claimed, under the return sought to be
revised.”;
(13) in section 30A, in sub-section (1), for the word “post”, the word “appoint” shall
be substituted;
(14) in section 33, in the Table, in column (1), against serial number 1, in column
(2),–
(a) for the word “five”, the word “ten” shall be substituted; and
(b) in the proviso, for the word “one”, the word “two” shall be substituted;
(15) after section 33, the following new section shall be inserted, namely:−
“33A. Proceedings against persons.– (1) Subject to section 51, the
Board shall prescribe rules for initiating criminal proceedings against any
82
authority mentioned in section 30 to 30DDD including any person subordinate
to the aforesaid authorities, who wilfully and deliberately commits or omits an
act which results in personal benefits and undue advantage to the authority or
the person or taxpayer or both.
(2) Where proceedings under sub-section (1) have been initiated
against a person or authority, the Board shall simultaneously intimate the
relevant government agency to initiate criminal proceedings against the
taxpayer.
(3) The proceedings under this section shall be without prejudice
to any liability that the authority, person or taxpayer may incur under any
other law for the time being in force.”;
(16) in section 37B,−
(a) for the words “a Sales Tax Officer”, wherever occurring, the words “an
officer of Inland Revenue” shall be substituted;
(b) for the words “the Sales Tax Officer”, wherever occurring, the words
“an officer of Inland Revenue” shall be substituted; and
(c) in sub-section (13), for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge,” shall
be substituted;
(17) for section 58, the following shall be substituted, namely:–
“58. Liability for payment of tax in case of private companies or
business enterprises.–(1) Notwithstanding anything contained in the
Companies Act, 2017 (XIX of 2017), where any private company or business
enterprise is wound up and any tax chargeable on the company or business
enterprise, whether before, or in the course, or after its liquidation, in respect
83
of any tax period cannot be recovered from the company or business
enterprise, every person who was an owner of, or partner in, or director of, or
a shareholder, owning not less than ten per cent of the paid-up capital, in the
company or business enterprise, as the case may be, during the relevant
period shall jointly and severally with such persons, be liable for the payment
of such tax.
(2) Any director, partner or shareholder, who pays tax under sub-
section (1) shall be entitled to recover the tax paid by him from the company
or business enterprise, or a share of the tax from other director or partner, or
a share in the proportion of holding from another shareholder, as the case
may be.
(3) The provisions of this Act shall apply to any amount due under
this section as if it were tax due under an order for assessment made under
this Act.”;
(18) in section 67A,−
(a) the expression “(Private)”, wherever occurring, shall be omitted; and
(b) in sub-section (12), for the expression “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge,” shall
be substituted;
(19) in section 71, in sub-section (1), for the expression “Notwithstanding anything
contained in this Act, the Federal Government”, the expression “subject to the
provisions of this Act, the Board” shall be substituted;
(20) in section 72B, after sub-section (1), following new sub-section shall be
inserted, namely:–
84
“(1A) Notwithstanding anything contained in this Act or any other law,
for the time being in force, the Board shall keep the selection parameters
confidential.”;
(21) in the Third Schedule, in column (1), after Serial No. 37and entries relating
thereto in columns (2) and (3), the following new Serial No. and
corresponding entries relating thereto shall be added, namely:–
“38. Household electrical goods, including
air conditioners, refrigerators, deep
freezers, televisions, recorders and
players, electric bulbs, tube-lights,
electric fans, electric irons, washing
machines and telephone sets.
Respective headings
39. Household gas appliances, including
cooking range, ovens, geysers and
gas heaters.
Respective headings
40. Foam or spring mattresses and other
foam products for household use.
Respective headings
41. Paints, distempers, enamels,
pigments, colours, varnishes, gums,
resins, dyes, glazes, thinners, blacks,
cellulose lacquers and polishes sold in
retail packing
Respective headings
42. Lubricating oils, brake fluids,
transmission fluid, and other vehicular
Respective headings
85
fluids sold in retail packing.
43. Storage batteries excluding those sold
to automotive manufacturers or
assemblers
Respective headings
44. Tyres and tubes excluding those sold
to automotive manufacturers or
assemblers
Respective headings
45. Motorcycles Respective headings
46. Auto rickshaws Respective headings”;
(22) in the Sixth Schedule,–
(a) in Table-1, in column (1),–
(i) against Serial No. 2 and 3, in column (2), after the word
“preserved”, the expression “, or packed” shall be inserted;
(ii) against Serial No. 19,−
(A) in column (2), after the word “industry”, the expression “,
excluding the products of milling industry, other than
wheat and meslin flour, as sold in retail packing bearing
brand name or a trademark” shall be inserted; and
(B) in column (3), the figure “1102.1000,” shall be omitted;
(iii) Serial No. 36 and 37 and entries relating thereto in columns (2)
and (3), shall be omitted;
(iv) against Serial No. 52A, in column (2), after the word “Goods”,
the expression “, excluding electricity and natural gas,” shall be
inserted;
86
(v) against Serial No. 72, in column (2), after the word “Meat”, the
expression “whether or not fresh, frozen or otherwise,
preserved or packed” shall be added;
(vi) against Serial No. 73A, in column (2), the expression “04.01
and” shall be omitted;
(vii) against Serial No. 82, in column (2), after the word “offal”, the
expression “, excluding those sold in retail packing under a
brand name or a trademark” shall be added;
(viii) against Serial No. 83, in column (2), after the word “fish”, the
expression “, excluding those sold in retail packing under a
brand name or a trademark” shall be added;
(ix) against Serial No. 85, in column (2), after the word “milk”, the
expression “, excluding that sold in retail packing under a brand
name or a trademark” shall be added; and
(x) after Serial No. 150 and entries relating thereto in columns (1),
(2) and (3), following new Serial No and corresponding entries
relating thereto shall be added, namely:–
“151. (a) Supplies; and
(b) imports of plant, machinery,
equipment for installation in tribal
areas and of industrial inputs by
the industries located in the tribal
areas, as defined in the
Constitution of Islamic Republic
Respective
heading
87
of Pakistan,−
as made till 30th June, 2023, to
which the provisions of the Act or
the notifications issued
thereunder, would have not
applied had Article 247 of the
Constitution not been omitted
under the Constitution (Twenty-
fifth Amendment) Act, 2018
(XXXVII of 2018):
Provided that, in case of
imports, the same shall be
allowed clearance by the
Customs authorities on
presentation of a post-dated
cheque for the amount of sales
tax payable under the Sales Tax
Act, 1990, and the same shall be
returned to the importer after
presentation of a consumption or
installation certificate, as the
case may be, in respect of
goods imported as issued by the
Commissioner Inland Revenue
88
having jurisdiction:
Provided further that if plant,
machinery and equipment, on
which exemption is availed under
this serial number, is transferred
or supplied outside the tribal
areas, the tax exempted shall be
paid at applicable rate on
residual value
153. Supplies of electricity, as made
from the day of assent to the
Constitution (Twenty-fifth
Amendment) Act, 2018, till 30th
June, 2023, to all residential and
commercial consumers in tribal
areas, and to such industries in
the tribal areas which were set
and started their industrial
production before 31st May,
2018, but excluding steel and
ghee or cooking oil industries
2716.0000
154. Steel billets, ingots, ship plates,
bars and other long re-rolled
profiles, on such imports and
Respective
headings”;
89
supplies by the manufacturer on
which federal excise duty is
payable in sales tax mode
(b) in Table-2, in column (1),−
(i) against Serial No. 16, in column (2), the words “and ginned
cotton” shall be omitted; and
(ii) after Serial number 24 and entries relating thereto in columns
(1), (2) and (3), the following new Serial No. and corresponding
entries relating thereto shall be added, namely:–
“25. Cottonseed oil 1512.2100
and
1512.2900
26 Wheat Bran 2302.3000”;
(23) in the Eighth Schedule,–
(a) in Table-1, in column (1),–
(i) against S. No. 14, for the entries in columns (1), (2), (3), (4)
and (5), the following shall be substituted, namely:–
“14. Milk and cream,
concentrated or
containing added
sugar or other
sweetening matter
0402.
1000
and
0402.
2000
10% Sold in retail
packing
under a
brand
name”;
(ii) S. No. 18, 21and 22 and entries relating thereto in columns (2),
(3), (4) and (5) shall be omitted;
90
(iii) against S. No. 27, in column (3), for the figure “8432.3090”,
occurring three times, the figure “8432.3900” shall be
substituted;
(iv) S. No. 32 and entries relating thereto in columns (2), (3), (4)
and (5) shall be omitted;
(v) against S. No. 56, in columns (4) and (5), for the figure “65”, the
figure “70” shall be substituted;
(vi) after S. No. 58 and entries relating thereto in columns (2), (3),
(4) and (5), the following new S. No. and corresponding entries
relating thereto shall be added, namely:–
“59. Products of
milling industry
except wheat
and meslin
flour
1101.0010,
1101.0020,
1102.2000,
1102.9000,
1103.1100,
1103.1300,
1103.1900,
1104.2200,
1104.2300,
1104.2900
and
1104.3000
10% If sold in retail
packing under
a brand name
or trademark
60. Fat filled milk 1901.9090 10% If sold in retail
packing under
91
a brand name
or trademark
61. Silver, in
unworked
condition
7106.1000,
7106.9110
and
7106.9190
1% plus
2% value
addition
62. Gold, in
unworked
condition
7108.1100,
7108.1210
and
7108.1290
1% plus
2% value
addition
63. Articles of
jewellery, or
parts thereof,
of precious
metal or of
metal clad with
precious
metal.
71.13 1.5% of
value of
gold, plus
0.5% of
value of
diamond,
used
therein,
plus 3%
of making
charges
No input tax
adjustment to
be allowed
except of the
tax paid on
gold
64. Prepared
Food, foodstuff
and
Respective
headings
7.5% Supplies only,
subject to
condition that
92
sweetmeats
supplied by
restaurants,
bakeries,
caterers and
sweetmeat
shops
no input tax
shall be
adjusted
65. Ginned cotton Respective
headings
10%
66. Supplies of
finished
articles of
textile, textile
made-ups,
leather and
artificial
leather, as
made by
retailers
Respective
heading
15% If they are
integrated with
FBR’s online
system and
data is
transmitted to
the FBR’s
computerized
system in real
time in such
mode and
manner as may
be prescribed
by the Board
67. LNG imported 2711.1100, 5% ”;
93
for servicing
CNG sector
and local
supplies
thereof
2711.2100
(24) in the Ninth Schedule, in the Table, in column (1), for S. No. 2 and entries
relating thereto in columns (2), (3), (4) and (5), the following shall be
substituted, namely:−
“2. Cellular mobile phones or
satellite phones to be
charged on the basis of
import value per set, or
equivalent value in rupees
in case of supply by the
manufacturer, at the rate
as indicated against each
category:--
−
A. Not exceeding US$ 30 Rs. 135 Rs. 135
B. Exceeding US$ 30 but
not exceeding US$ 100
Rs. 1,320 Rs. 1,320
C. Exceeding US$ 100 but
not exceeding US$ 200
Rs. 1,680 Rs. 1,680
D. Exceeding US$ 200 but
not exceeding US$ 350
Rs. 1,740 Rs. 1,740
94
E. Exceeding US$ 350 but
not exceeding US$ 500
Rs. 5,400 Rs. 5,400
F. Exceeding US$ 500 Rs. 9,270 Rs. 9,270 ”; and
(25) after Ninth Schedule, amended as aforesaid, the following new Schedules
shall be added, namely:−
“The
TENTH SCHEDULE
[See sub-section (1B) of section 3]
The tax on bricks, falling in PCT heading 6901.1000, shall be paid on fixed
basis, on monthly return, at the rates specified in Table below:–
TABLE
S.
No.
Region or area Tax payable
per month
(1) (2) (3)
1. Lahore, Rawalpindi and Islamabad districts Rs. 12,500
2. Attock, Chakwal, Jehlum, Mandi Bahauddin,
Sargodha, Gujrat, Sialkot, Narowal, Gujranwala,
Hafizabad, Sheikhupura, Kasur, Nankana Sahib,
Chiniot, Faisalabad, Jhang, Toba Tek Singh, Okara
and Sahiwal districts
Rs. 10,000
3. Khushab, Mianwali, Bhakar, Layyah, Muzaffarghar,
Dera Ghazi Khan, Rajanpur, Multan, Lodhran,
Khanewal, Vehari, Bahawalpur, Pakpattan,
Bahawalnagar, Rahim Yar Khan districts; and
Rs. 7,500
95
Sindh, Khyber-Pakhtunkhwa and Baluchistan
provinces
The
ELEVENTH SCHEDULE
[see sub-section (7) of section 3]
TABLE
The rates for withholding or deduction by the withholding agent
S
No.
Withholding agent Supplier
category
Rate or extent
of deduction
(1) (2) (3) (4)
1. (a) Federal and provincial
government departments;
autonomous bodies; and public
sector organizations
(b) Companies as defined in the
Income Tax Ordinance, 2001 (XLIX
of 2001)
Registered
persons
1/5th of Sales
Tax as shown
on invoice
2. (a) Federal and provincial
government departments;
autonomous bodies; and public
sector organizations
(b) Companies as defined in the
Income Tax Ordinance, 2001 (XLIX
Person
registered as a
wholesaler,
dealer or
distributor
1/10th of Sales
Tax as shown
on invoice
96
of 2001)
3. Federal and provincial government
departments; autonomous bodies;
and public sector organizations
Unregistered
persons
Whole of the
tax involved or
as applicable
to supplies on
the basis of
gross value of
supplies
4. Companies as defined in the
Income Tax Ordinance, 2001 (XLIX
of 2001)
Unregistered
persons
5% of gross
value of
supplies
5. Registered persons as recipient of
advertisement services
Person
providing
advertisement
services
Whole of sales
tax applicable
The
TWELFTH SCHEDULE
[See sub-section (2) of section 7A]
TABLE
S. No. Goods or class of goods PCT Heading Rate
(1) (2) (3) (4)
1. All imported goods subject to
exclusions as in conditions
and procedure given after the
Respective
Heading
3% ad valorem
97
Table
Procedure and conditions:–
(1) The sales tax on account of minimum value addition as payable under
this Schedule (hereinafter referred to as value addition tax), shall be
levied and collected at import stage on all taxable goods as are
chargeable to tax under section 3 of the Act or any notification issued
thereunder at the rate specified in the Table in addition to the tax
chargeable under section 3 of the Act or a notification issued
thereunder:
(2) The value addition tax under this Schedule shall not be charged on,—
(i) Raw materials and intermediary goods meant for use in an
industrial process which are subject to customs duty at 16% or
20% ad valorem under First Schedule to the Customs Act,
1969;
(ii) The petroleum products falling in Chapter 27 of Pakistan
Customs Tariff as imported by a licensed Oil Marketing
Company for sale in the country;
(iii) Registered service providers importing goods for their in-house
business use for furtherance of their taxable activity and not
intended for further supply; and
(iv) Cellular mobile phones or satellite phones.
(3) The value addition tax paid at import stage shall form part of input tax,
and the importer shall deduct the same from the output tax due for the
tax period, subject to limitations and restrictions under the Act, for
98
determining his net liability. The excess of input tax over output tax
shall be carried forwarded to the next tax period as provided in section
10 of the Act.
(4) In no case, the refund of excess input tax over output tax, which is
attributable to tax paid at import stage, shall be refunded to a
registered person.
(5) The registered person, if also dealing in goods other than imported
goods, shall be entitled to file refund claim of excess carried forward
input tax for a period as provided in section 10 or in a notification
issued there under by the Board after deducting the amount
attributable to the tax paid at import stage i.e. sum of amounts paid
during the claim period and brought forward to claim period. Such
deducted amount may be carried forward to subsequent tax period.”.
12 Amendments of the Islamabad Capital Territory (Tax on Services) Ordinance,
2001 (XLII of 2001).- In the Islamabad Capital Territory (Tax on Services) Ordinance, 2001
(XLII of 2001), the following further amendments shall be made, namely:-
(1) in the Schedule, in column (1),–
(a) against S. No. 41,for the words “eighteen and a half”, the word
“seventeen” shall be substituted;
(b) after S. No. 42 and the entries relating thereto in columns (2), (3) and
(4), the following new S. No. and corresponding entries relating thereto
shall be added, namely:–
“43. Advertisement on hoarding
boards, pole signs and
9802.9000 Sixteen percent
99
signboards, and websites or
internet
44. Services provided by
landscape designers
9814.4000 Sixteen percent
45. Sponsorship services 9805.9100 Sixteen percent
46. Services provided or rendered
for purchase or sale or hire of
immovable property
- - Sixteen percent
47. Services provided or rendered
by legal practitioners and
consultants
9815.2000 Sixteen percent
48. Services provided by
accountants and auditors
9815.3000 Sixteen percent
49. Service provided or rendered
by Stockbrokers, future brokers
and commodity brokers,
money exchanger, surveyors,
outdoor photographers, event
photographers, videographers,
art painters, auctioneers
(excluding value of goods) and
registrar to an issue
9819.1000,
9819.2000,
9819.5000,
9819.7000,
9819.8000,
9819.9100,
9819.9500
and
9819.9090
Sixteen percent
50. Services provided by race
clubs:
- - Sixteen percent
100
Entry/ admission and
other services
51. Services provided or rendered
by corporate law consultants
9815.9000 Sixteen percent
52. Visa processing services,
including advisory or
consultancy services for
migration or visa application
filing services
- - Sixteen percent
53. Debt collection services and
other debt recovery services
- - Sixteen percent
54. Supply chain management or
distribution (including delivery)
services
- - Sixteen percent
55. Services provided or rendered
by persons engaged in inter-
city transportation or carriageof
goods by road or through
pipeline or conduit
- - Sixteen percent
56. Ready mix concrete services - - Sixteen percent
57. Public relations services - - Sixteen percent
58. Training or coaching services
other than education services
- - Sixteen percent
59. Cleaning services including 9822.2000, Sixteen
101
janitorial services, collection of
waste and processing of
domestic waste
9822.3000
and
9822.9000
percent”.
13 Amendment of Ordinance, XLIX of 2001.─ In the Income Tax Ordinance, 2001
(XLIX of 2001), the following further amendments shall be made, namely:-
(1) in section 2,—
(A) clause (1A) shall be re-numbered as "(1B)" and after clause (1), the
following new clause shall be inserted, namely:—
"(1A) "active taxpayers' list" means the list instituted by the
Board under section 181A and includes such list issued
by the Azad Jammu and Kashmir Council Board of
Revenue or Gilgit-Baltistan Council Board of Revenues";
(B) after clause (5B), the following new clause shall be inserted, namely:-
“(5C) “asset move” means the transfer of an offshore asset to
an unspecified jurisdiction by or on behalf of a person
who owns, possesses, controls, or is the beneficial
owner of such offshore asset for the purpose of tax
evasion;”;
(C) after clause (22B), the following new clause shall be inserted namely:-
“(22C) “FBR Refund Settlement Company Limited" means the
company with this name as incorporated under the
102
Companies Act, 2017 (XIX of 2017), for the purposes of
settlement of income tax refund claims including
payment by way of issuing refund bonds under section
171A;";
(D) clause (23A) shall be omitted;
(E) clause (35C) shall be omitted;
(F) after clause (38A), the following new clauses shall be inserted,
namely:-
“(38AB) “offshore asset” in relation to a person, includes any
movable or immovable asset held, any gain, profit, or
income derived, or any expenditure incurred outside
Pakistan;
(38AC) “offshore enabler” means a person who owns,
possesses, controls, or is the beneficial owner of an
offshore asset and does not declare, or under
declares or provides inaccurate particulars of such
asset to the Commissioners.;
(38AD) “offshore evader” includes any person who, enables,
assists, or advises any person to plan, design,
arrange or manage a transaction or declaration
relating to an offshore asset, which has resulted or
may result in tax evasion;”;
103
(G) after clause (60), the following new clause shall be inserted, namely:-
“(60A) “specified jurisdiction” means any jurisdiction which has
committed to automatically exchange information under
the Common Reporting Standard with Pakistan;”; and
(H) after clause (73), the following new clause shall be inserted, namely:-
“(73A) “unspecified jurisdiction” means a jurisdiction which is
not a specified jurisdictions.”;
(2) in section 4B, in sub-section (2), in cluase (iv), after the word “computed”, the
expression “(other than brought forward depreciation and brought forward
business losses)” shall be inserted;
(3) in section 7B, for sub-section (3), the following shall be substituted, namely:—
"(3) This section shall not apply to a profit on debt that—
(a) is exempt from tax under this Ordinance; or
(b) exceeds thirty six million rupees.";
(4) in section 21, after clause (c), the following new clause shall be inserted,
namely:—
"(ca) any amount of commission paid or payable in respect of supply
of products listed in the Third Schedule of the Sales Tax Act,
1990, where the amount of commission paid exceeds 0.2
percent of gross amount of supplies thereof unless the person
to whom commission is paid or payable, as the case may be, is
104
registered under the Sales Tax Act, 1990 and is appearing in
the active taxpayer list under this Ordinance.";
(5) in section 24,—
(A) for sub-section (4), the following shall be substituted, namely:—
“(4) An intangible that does not have an ascertainable useful
life shall be treated as if it had a normal useful life of twenty-five
years.”; and
(B) in sub-section (11), after the expression "land)", the expression
"but shall not include self-generated goodwill or any adjustment arising
on account of accounting treatment in the manner as may be
prescribed" shall be inserted.;
(6) in section 37,—
(A) sub-section (1A) shall be omitted;
(B) after sub-section (3), the following new sub-sections shall be inserted ,
namely:—
"(3A) Notwithstanding anything contained in sub-
section (3), the amount of any gain arising on disposal of
immovable property being an open plot shall be computed in
accordance with the following formula, namely:—
TABLE
105
S.No. Holding Period Gain
(1) (2) (3)
1. Where the holding period of open plot
does not exceed one year
A
2. Where the holding period of open plot
is exceeds one year but does not
exceed ten years
A x 3/4
3. Where the holding period of open plot
exceeds ten years
0
where A is the amount of the gain determined under sub-
section (2).
(3B) Notwithstanding anything contained in sub-section (3),
the amount of any gain arising on disposal of immovable property
being a constructed property shall be computed in accordance with the
following formula, namely:—
TABLE
S.No. Holding Period Gain
(1) (2) (3)
1. Where the holding period of constructed property A
106
does not exceed one year
2. Where the holding period of constructed property
exceeds one year but does not exceed five years
A x 3/4
3. Where the holding period of constructed property
exceeds five years
0
where A is the amount of the gain determined under sub-section (2).";
(7) in section 39, in sub-section (1),—
(a) in clause (k), the word "and" at the end shall be omitted;
(b) in clause (l), for the full stop at the end, a semi colon and the word
"and" shall be substituted; and
(c) after clause (l), amended as aforesaid, the following new clause shall
be added, namely:—
"(la) subject to sub-section (3), any amount or fair market
value of any property received without consideration or
received as gift, other than gift received from
grandparents, parents, spouse, real brother, real sister,
son or a daughter.";
(8) in section 53, in sub-section (2), the expression "removal of anomalies in
taxes, development of backward areas," shall be omitted;
(9) in section 62A, in sub-section (1), the expression “being a filer”, wherever
occurring, shall be omitted;
107
(10) after section 64B, the following new section shall be inserted, namely:—
"64C. Tax credit for persons employing fresh graduates.— (1) A
person employing freshly qualified graduates from a university or institution
recognized by Higher Education Commission shall be entitled to a tax credit
in respect of the amount of annual salary paid to the freshly qualified
graduates for a tax year in which such graduates are employed.
(2) The amount of tax credit allowed under sub-section (1) for a tax
year shall be computed according to the following formula, namely:—
(A/B) x C
where—
A is the amount of tax assessed to the person for the tax year
before allowance of tax credit under this section;
B is the person's taxable income for the tax year; and
C is the lessor of —
(a) the annual salary paid to the freshly qualified
graduates referred to in sub-section (1) in the
year; and
(b) five percent of the person's taxable income for
the year;
(3) The tax credit shall be allowed for salary paid to the number of
freshly qualified graduates not exceeding fifteen percent of the total
employees of the company in the tax year.
108
(4) In this section, "freshly qualified graduate" means a person who
has graduated after the first day of July, 2017 from any institution or university
recognized by the Higher Education Commission.” ;
(11) in section 65B,—
(A) in sub-section (1), for the full stop, occurring at the end, a colon shall
be substituted and thereafter, the following provisos shall be added,
namely:—
Provided that for the tax year 2019 the rate of credit shall be
equal to five percent of the amount so invested:
Provided further that the provisions of sub-section (5) relating
to carry forward of the credit to be deducted from tax payable, to the
following tax years, as specified in the said sub-section, shall continue
to apply after tax year 2019.
(B) in sub-section (2), for the figure “2021”, the figure “2019” shall be
substituted;
(12) after section 75, the following new section shall be inserted, namely:—
"75A. Purchase of assets through banking channel.— (1)
Notwithstanding anything contained in any other law, for the time being in
force, no person shall purchase—
(a) immovable property having fair market value greater than
rupees five million; or
109
(b) any other asset having fair market value more than one million
rupees,
otherwise than by a crossed cheque drawn on a bank or through crossed
demand draft or crossed pay order or any other crossed banking instrument
showing transfer of amount from one bank account to another bank account.
(2) For the purposes of this section, fair market value means value
notified by the Board under sub-section (4) of section 68 or value fixed by the
provincial authority for the purposes of stamp duty, whichever is higher.
(3) In case the transaction is not undertaken in the manner
specified in sub-section (1),—
(a) such asset shall not be eligible for any allowance under
sections 22, 23, 24 and 25 of this Ordinance; and
(b) such amount shall not be treated as cost in terms of
section 76 of this Ordinance for computation of any gain
on sale of such asset.";
(13) in section 82,—
(a) in clause (a), the word "or", occurring at the end shall be omitted; and
(b) after clause (a), amended as aforesaid, the following new clause shall
be inserted, namely:—
"(ab) is present in Pakistan for a period of, or periods amounting in
aggregate to, ninety days or more in the tax year and who, in
the four years preceding the tax year, has been in Pakistan for
110
a period of, or periods amounting in aggregate to, three
hundred and sixty-five days or more; or";
(14) after section 99B, the following new section shall be inserted, namely:—
"99C. Special procedure for certain persons.— Notwithstanding
anything contained in this Ordinance, the Federal Government may, by
notification in the official Gazette, prescribe special procedure for scope and
payment of tax, record keeping, filing of return and assessment in respect of
such small businesses, construction businesses, medical practitioners,
hospitals, educational institutions and any other sector specified by the
Federal Government, in such cities or territories, as may be specified
therein.";
(15) after section 100B, the following new section shall be inserted, namely:—
"100BA. Special provisions relating to persons not appearing in
active taxpayers' list.— (1) The collection or deduction of advance income
tax, computation of income and tax payable thereon shall be determined in
accordance with the rules in the Tenth Schedule.
(2) The provisions of the Tenth Schedule shall have effect
notwithstanding anything to the contrary contained in this Ordinance.";
(16) in section 100C,—
(A) in sub-section (1), in clause (d), for full stop at the end a semicolon
shall be substituted and thereafter the following new clauses shall be
added, namely:-
111
"(e) approval of the Commissioner has been obtained as per the
requirement of clause (36) of section 2:
Provided that this clause shall take effect from the first
day of July, 2020; and
(f) none of the assets of trusts or welfare institutions confers, or
may confer, a private benefit to the donors or family, children or
author of the trust or his descendents or the maker of the
institution or to any other person:
Provided that where such private benefit is conferred,
the amount of such benefit shall be added to the income of the
donor:"; and
(B) in sub-section (2), clause (c) shall be omitted;
(17) in section 107, in sub-section (1B), after the expression “(XCVI of 2002)”; the
expression “subject to clause (a) of sub-section (3) of section 216 of this
Ordinance” shall be inserted;
(18) after section 108, the following new sections shall be inserted, namely:—
“108A. Report from independent chartered accountant or cost
and management accountant.— (1) Where the Commissioner is of the
opinion that a transaction has not been declared at arm's length, the
Commissioner may obtain report from an independent chartered accountant
or cost and management accountant to determine the fair market value of
asset, product, expenditure or service at the time of transaction.
112
(2) The scope, terms and conditions of the report shall be as may
be prescribed.
(3) Where the Commissioner is satisfied with the report of the
independent chartered accountant or cost and management accountant, the
fair market value of asset, product, expenditure or service determined in the
report shall be treated as definite information for the purpose of sub-section
(8) of section 122.
(4) Where the Commissioner is not satisfied with the report of the
independent chartered accountant or cost and management accountant, the
Commissioner may record reasons for being not satisfied with the report and
seek report from another independent chartered accountant or cost and
management accountant, to determine the fair market value of asset, product,
expenditure or service at the time of transaction.
(5) The Commissioner shall seek report under sub-section (1) or
sub-section (3), as the case may be, with prior approval of the Board.
108AB.Transactions under dealership arrangements.— (1) Where
a person supplies products listed in the Third Schedule to the Sales Tax Act,
1990 or any other products as prescribed by the Board, under a dealership
arrangement with the dealers who are not registered under the Sales Tax Act,
1990 and are not appearing in the active taxpayers’ list under this Ordinance,
an amount equal to seventy-five percent of the dealer's margin shall be added
to the income of the person making such supplies.
(2) For the purposes of operation of this section, ten percent of the
sale price of the manufacturer shall be treated as dealers margin.”;
113
(19) in section 111, in sub-section (4),—
(a) in clause (a), for the word "ten", the word "five" shall be
substituted; and
(b) clause (c) shall be omitted;
(20) in section 114, in sub-section (1), in clause (b), in sub-clause (iii), for the
words “two hundred and fifty”, the words “five hundred” shall be substituted;
(21) in section 118, in sub-section (3), in clause (a), for the expression “31st day of
August", the expression "30th day of September" shall be substituted;
(22) after the omitted section 120A, the following new section shall be inserted,
namely:—
"120B. Restriction of proceedings.— (1) Where any person entitled
to declare undisclosed assets, undisclosed expenditure and undisclosed
sales under the Assets Declaration Act, 2019 declares such assets,
expenditures or sales to pay tax, no proceedings shall be undertaken under
this Ordinance in respect of such declaration.
(2) Notwithstanding anything contained in any other law, for the
time being in force, sub-section (3) of section 216, except the provisions of
clauses (a) and (g) of sub-section (3) of section 216, particulars of the
persons making declaration under the Assets Declaration Act, 2019 or any
information received in any declaration made under the said Act shall be
confidential.”;
(23) in section 134A, in sub-section (2), in clause (ii),—
114
(i) in sub-clause (a),—
(a) after the word "accountants", the expression ", cost and
management accountants" shall be inserted; and
(b) after the word “having”, the words “minimum ten years” shall be
inserted;
(ii) in sub-clause (b), in the proviso, after the word "Accountant", wherever
occurring, the words "or cost and management accountant" shall be
inserted;
(24) in section 139, sub-section (5) shall be re-numbered as “(7)” and after sub-
section (4), the following new sub-sections shall be inserted, namely:—
"(5) Notwithstanding anything contained in any other law, for the
time being in force, where any tax payable by an association of persons in
respect of any tax year cannot be recovered from the association of persons,
every person who was, at any time in that tax year, a member of the
association of persons, shall be jointly and severally liable for payment of the
tax due by the association of persons.
(6) Any member who pays tax under sub-section (5) shall be
entitled to recover the tax paid from the association of persons or a share of
the tax from any other member.”;
(25) in section 145, after sub-section (4), the following new sub-section shall be
added, namely:-
115
“(5) Notwithstanding anything contained in any other law, for the
time being in force, where on the basis of information received from any
offshore jurisdiction, the Commissioner has reason to believe that such
person who is likely to leave Pakistan may be involved in offshore tax evasion
or such person is about to dispose of any such asset, the Commissioner may
freeze any domestic asset of the person including any asset beneficially
owned by the person for a period of one hundred and twenty days or till the
finalization of proceedings including but not limited to recovery proceedings
under this Ordinance whichever is earlier.";
(26) in section 147A, in sub-section (8), for the words “who was filer”, the words
“whose name was appearing in the active taxpayers' list” shall be substituted;
(27) in section 148,—
(A) in sub-section (7),—
(a) for the words "a final" the word "minimum" shall be substituted;
(b) the expression "except as provided under sub-section (8)" shall
be omitted; and
(B) in sub-section (8A), for the word "final", the word "minimum" shall be
substituted;
(28) in section 151, in sub-section (3), for the word, "final" the word, "minimum"
shall be substituted;
(29) in section 152,—
116
(A) in sub-section (1B), for the colon, a full stop shall be substituted and
thereafter the proviso shall be omitted;
(B) for the word, "final", wherever occurring, the word, "minimum" shall be
substituted;
(C) after sub-section (4A), the following new sub-section shall be inserted,
namely:—
"(4B) The Commissioner may, in case of payment that
constitutes part of an overall arrangement of a cohesive business
operation as referred to in paragraph (ii) of sub-clause (g) of clause
(41) of section 2, on application made by the person making payment
and after making such inquiry, as the Commissioner thinks fit, allow by
order in writing, the person to make payment after deduction of tax
equal to thirty percent of the tax chargeable on such payment under
sub-section (2):
Provided that the credit of the tax so deducted shall be
available to the permanent establishment of the non-resident
accounting for overall profits arising on the overall cohesive business
operation.";
(30) in section 153,—
(A) in sub-section (3),—
(a) for the word "final", wherever occurring. the word "minimum"
shall be substituted;
117
(b) in clause (a), for the words "be adjustable", the words "not be
minimum tax" shall be substituted;
(c) for clause (b), the following shall be substituted, namely:—
“(b) tax deductible shall be a minimum tax on
transactions referred to in clause (b) of sub-
section (1).”;
(d) in clause (d), the expression "with effect from tax year 2013
shall be omitted; and
(e) in clause (e), the expression "with effect from the 1st July,
2016" shall be omitted;
(B) in sub-section (4), for the word "adjustable", the words "not minimum"
shall be substituted;
(C) sub-section (4A) shall be omitted;
(31) after omitted section 153A, the following new section shall be inserted,
namely:-
“153B. Payment of royalty to resident persons.— (1) Every person
paying an amount of royalty, in full or in part including by way of advance, to a
resident person shall deduct tax from the gross amount payable (including
Federal excise duty and provincial sales tax, if any) at the rate specified in
Division IIIB of Part III of the First Schedule.
(2) The tax deductible under sub-section (1) shall be adjustable.”;
118
(32) in section 161, after sub-section (2), the following new sub-section shall be
added, namely:—
“(3) The Commissioner may, after making, or causing to be made,
such enquiries as he deems necessary, amend or further amend an order of
recovery under sub-section (1), if he considers that the order is erroneous in
so far it is prejudicial to the interest of revenue:
Provided that the order of recovery shall not be amended, unless the
person referred to in sub-section (1) has been provided an opportunity of
being heard.”;
(33) in section 165, after the expression "Chapter XII", wherever occurring, the
words "or the Tenth Schedule" shall be inserted;
(34) in section 165A, in sub-section (1),—
(A) in clause (a), the expression “for filers and non-filers” shall be omitted;
and
(B) in clause (d),─
(a) after the word “exceeding”, the words “one million rupees for
filers and” shall be omitted; and
(b) after the words “thousand rupees”, the expression “for non-
filers” shall be omitted;
(35) in section 168, sub-section (3) shall be omitted;
(36) in section 169, for sub-section (4), the following shall be substituted, namely:-
119
“(4) Where the tax collected or deducted is final tax under any
provision of this Ordinance and hundred percent higher tax rate has
been prescribed for the said tax under the Tenth Schedule, the final
tax shall be the tax rate prescribed in the First Schedule and the
excess tax collected under the Tenth Schedule specified for persons
not appearing in the active taxpayers’ list shall be adjustable in case
the return is filed before finalization of assessment as provided in rule
4 of the Tenth Schedule.”;
(37) after section 171, the following new section shall be inserted, namely:−
“171A. Payment of refund through income tax refund bonds.— (1)
Notwithstanding anything contained in sections 170 and 171, the income tax
refunds payable under this Ordinance may also be paid through income tax
refund bonds to be issued by FBR Refund Settlement Company Limited, in
book-entry form through an establishment licensed by the Securities and
Exchange Commission of Pakistan as a central depository under the
Securities Act, 2015 (III of 2015), in lieu of payment to be made through
issuance of cheques or bank debit advice.
(2) The Board shall issue a promissory note to FBR Refund
Settlement Company Limited, hereinafter referred to as the company,
incorporating the details of refund claimants and the amount of refund
determined as payable to each for issuance of income tax refund bonds,
hereinafter referred to as the bonds, of the same amount.
(3) The bonds shall be issued in values in multiples of one hundred
thousand rupees.
120
(4) The bonds so issued shall have a maturity period of three years
and shall bear annual simple profit at ten percent.
(5) The bonds shall be traded freely in the country’s secondary
markets.
(6) The bonds shall be approved security for calculating the
statutory liquidity reserve.
(7) The bonds shall be accepted by the banks as collateral.
(8) There shall be no compulsory deduction of Zakat against the
bonds and Sahib-e-Nisab may pay Zakat voluntarily according to Shariah.
(9) After period of maturity, the company shall return the
promissory note to the Board and the Board shall make the payment of
amount due under the bonds, along with profit due, to the bond holders.
(10) The bonds shall be redeemable in the manner as in sub-
section (9) before maturity only at the option of the Board along with simple
profit payable at the time of redemption in the light of general or specific
policy to be formulated by the Board.
(11) The refund under sub-section (1) shall be paid in the aforesaid
manner to the claimants who opt for payment in such manner.
(12) The Federal Government may notify procedure to regulate the
issuance, redemption and other matters relating to the bonds, as may be
required.”;
121
(38) in section 175, after sub-section (6), the following new sub-section shall be
inserted, namely:—
“(6A) The Commissioner shall, subject to the condition as may be
prescribed, raid any premises where there is reliable information of
undeclared gold, bearer security or foreign currency and confiscate the same
in order to enforce any provision of this Ordinance.”;
(39) in section 177,—
(A) for sub-section (6), the following shall be substituted, namely:-
“(6) After completion of the audit, the Commissioner shall,
after obtaining taxpayer’s explanation on all the issues raised in the
audit, issue an audit report containing audit observations and
findings.”; and
(B) after sub-section (6), substituted as aforesaid, the following new
sub-section shall be inserted, namely:—
“(6A) After issuing the audit report, the Commissioner may, if
considered necessary, amend the assessment under sub-section (1)
or sub-section (4) of section 122, as the case may be, after providing
an opportunity of being heard to the taxpayer under sub-section (9) of
section 122.”;
(40) after section 181C, the following new section shall be inserted, namely:—
“181D. Business licence scheme.—Every person engaged in any
business, profession or vocation shall be required to obtain and display a
business licence as prescribed by the Board.”;
122
(41) in section 182, in sub-section (1), in the Table, in column(1),—
(A) against S.No.1, in column (3),—
(a) for the word “twenty", wherever occurring, the words, “forty”,
shall be substituted; and
(b) after the colon at the end, the following proviso shall be
inserted, namely:—
“Provided that If seventy-five percent of the income is
from salary and the amount of income under salary is less than
five million rupees, the minimum amount of penalty shall be five
thousand rupees.”;
(B) against S. No. 1AA, in column (3), for the figure “20,000”, the figure
“100,000” shall be substituted;
(C) against S.No.3, in column (3), for the word ‘five”, the word “ten”, shall
be substituted;
(D) against S. No. 6, in column (3), for the word “five”, the word “thirty”,
shall be substituted;
(E) against S. No. 11, in column (3), for the words “twenty five”, the word,
“fifty”, shall be substituted;
(F) against S. No. 12, in column (3), for the words “ twenty five, thewords
“one hundred”, shall be substituted;
(G) against S. No 15, in column (3), for the words “twenty five”, theword
“forty” shall be substituted; and
123
(H) after S. No. 20 and entries relating thereto in columns (2), (3) and (4),
the following new serial numbers and corresponding entries relating
thereto shall be inserted, namely:-
"21 Any person who
purchases immovable
property having fair
market value greater
than rupees five million
through cash or bearer
cheque
Such person shall
pay a penalty of five
percent of the value
of property
determined by the
Board under sub-
section (4) of section
68 or by the
provincial authority
for the purposes of
stamp duty,
whichever is higher.
75A
22 Where an offshore tax
evader is involved in
offshore tax evasion in
the course of any
proceedings under this
Ordinance before any
Income Tax authority or
the appellate tribunal.
Such person shall
pay a penalty of one
hundred thousand
rupees or an amount
equal to two
hundred per cent of
the tax which the
person sought to
General
124
evade, whichever is
higher.
23 Where in the course of
any transaction or
declaration made by a
person an enabler has
enabled, guided,
advised or managed
any person to design,
arrange or manage that
transaction or
declaration in such a
manner which has
resulted or may result in
offshore tax evasion in
the course of any
proceedings under this
Ordinance.
Such person shall
pay a penalty of
three hundred
thousand rupees or
an amount equal to
two hundred per
cent of the tax which
was sought to be
evaded, whichever
is higher.
General
24 Any person who is
involved in asset move
as defined in clause
(5C) of section 2 of the
Ordinance from a
Such person shall
pay a penalty of one
hundred thousand
rupees or an amount
equal to one
General
125
specified territory to an
un-specified territory.
hundred per cent of
the tax whichever is
higher.
25 Where a Reporting
Financial Institution fails
to comply with any
provisions of section
165B of the Ordinance
or Common Reporting
Standard Rules in
Chapter XIIA of Income
Tax Rules, 2002.
Such Reporting
Financial Institution
shall pay a penalty
of Rs.10, 000 for
each default and an
additional Rs.
10,000 each month
until the default is
redressed.
26 Where a Reporting
Financial Institution files
an incomplete or
inaccurate report under
provisions of section
165B of the Ordinance
and Common Reporting
Standard Rules in
Chapter XIIA of Income
Tax Rules, 2002.
Such Reporting
Financial Institution
shall pay a penalty
of Rs.10, 000 for
each default and an
additional Rs.
10,000 each month
until the default is
redressed.
126
27 Where a Reporting
Financial Institution fails
to obtain valid self-
certification for new
accounts or furnishes
false self-certification
made by the Reportable
Jurisdiction Person
under Common
Reporting Standard
Rules in Chapter XIIA of
Income Tax Rules,
2002.
Such Reporting
Financial Institution
shall pay a penalty
of Rs.10,000 for
each default and an
additional Rs.
10,000 each month
until the default is
redressed.
28 Where a Reportable
Jurisdiction Person fails
to furnish valid self-
certification or furnishes
false self-certification
under Common
Reporting Standard
Rules in Chapter XIIA of
Income Tax Rules,
Such Reportable
Jurisdiction Person
shall pay a penalty
of Rs. 5,000 for
each default and an
additional Rs. 5,000
each month until the
default is
redressed.” ;
127
2002.
(42) in section 182A, in sub-section (1),—
(A) in clause (a), for the expression “; and”, at the end, a colon shall be
substituted and thereafter the following new proviso shall be inserted,
namely:—
“Provided that without prejudice to any other liability under this
Ordinance, the person shall be included in the active taxpayers’ list on
filing return after the due date, if the person pays surcharge at
rupees—
(i) twenty thousand in case of a company;
(ii) ten thousand in case of an association of persons;
(iii) one thousand in case of an individual.";
(B) in clause (b), for the full stop at the end, a semicolon shall be
substituted and thereafter the following new clauses shall be added,
namely:—
“(c) not be issued refund during the period the person is not
included in the active taxpayers’ list; and
(d) not be entitled to additional payment for delayed refund under
section 171 and the period the person is not included in the
active taxpayers’ list, shall not be counted for computation of
additional payment for delayed refund.”;
128
(43) in section 191, in sub-section (1), after clause (c), the following new clause
shall be inserted, namely:-
"(ca) furnish particulars or complete or accurate particulars of persons
mentioned in sub-section (1) of section 165;";
(44) after section 192A , the following new section shall be inserted, namely :-
“192B. Prosecution for concealment of an offshore asset. — (1)
Any person who fails to declare an offshore asset to the Commissioner or
furnishes inaccurate particulars of an offshore asset and revenue impact of
such concealment or furnishing of inaccurate particulars is one hundred
thousand rupees or more shall commit an offence punishable on conviction
with imprisonment up to seven years or with a fine up to two hundred percent
of the amount of tax evaded or both.”;
(45) after section 195, the following new sections shall be inserted, namely:-
“195A. Prosecution for non-compliance with notice under section
116A.— Any person who, without reasonable excuse, fails to comply with a
notice under sub-section (2) of section 116A; shall commit an offence
punishable on conviction with imprisonment up to two years or with a fine up
to a penalty of two percent of the offshore asset not declared or both.
195B. Prosecution for enabling offshore tax evasion.— Any
enabler who enables, guides or advises any person to design, arrange or
manage a transaction or declaration in such a manner which results in
offshore tax evasion, shall commit an offence punishable on conviction with
129
imprisonment for a term not exceeding seven years or with a fine up to five
million rupees or both.”;
(46) in section 215, in sub-section (1),—
(A) the expression “or persons or class of persons (hereinafter called
‘filer’),” shall be omitted; and
(B) for the word, "filer" the word, "person" shall be substituted;
(47) in section 216, after sub-section (6A), the following new sub-sections,shall be
inserted, namely:-
“(6B) Nothing contained in sub-section (1) shall prevent the Board
from publishing the names of offshore evaders, in the print and electronic
media who have evaded offshore tax equal to or exceeding rupees two and
half million.
(6C) Nothing contained in sub-section (1) shall prevent the Board
from publishing the names of offshore tax enablers, in the print and electronic
media who have enabled offshore tax evasion.”;
(48) after section 216, amended as aforesaid, the following new section shall be
inserted, namely:—
"216A. Proceedings against persons.—(1) Subject to section 227,
the Board shall prescribe rules for initiating proceedings including criminal
proceedings against any authority mentioned in section 207 and officer of
the Directorates General mentioned in Part II and Part III of Chapter XI
including any person subordinate to the aforesaid authorities or officers of
the Directorates General who willfully and deliberately commits or omits an
130
act which results in personal benefits and undue advantage to the authority
or the person or taxpayer or both.
(2) Where proceedings under sub-section (1) have been initiated
against a person or authority, the Board shall simultaneously intimate the
relevant Governmental agency to initiate criminal proceedings against the
taxpayer.
(3) The proceedings under this section shall be without prejudice
to any liability that the authority, person or taxpayer may incur under any
other law for the time being in force.
(49) section 227C shall be omitted;
(50) after the omitted section 227C, the following new section shall be inserted,
namely:—
"227D. Automated impersonal tax regime.— (1) The Board may
design an alternate impersonal taxation regime whereby personal interaction
will be minimized.
(2) The Board may, by notification in the official Gazette, prescribe
the procedure in this behalf.
(3) This section shall be applicable only for low risk and compliant
taxpayers as may be prescribed.”;
(51) in section 230E, in the marginal note, for the word "Tar" the word "Tax" shall
be substituted;
(52) in section 230F, sub-section (23) shall be omitted;
131
(53) after section 230F, amended as aforesaid, the following new sections shall be
inserted, namely:—
“230G. Directorate General of Special Initiative.— (1) The
Directorate General of Special Initiative shall consist of a Director General
and as many Directors, Additional Directors, Deputy Directors, Assistant
Directors and such other officers as the Board may, by notification in the
official Gazette, appoint.
(2) The Board may, by notification in the official Gazette,—
(a) specify the functions, jurisdiction and powers of the
Directorate General of Special Initiative and its officers;
and
(b) confer the powers of authorities specified in section 207
upon the Directorate General and its officers.
230H. Directorate General of Valuation.— (1) The Directorate
General of Valuation shall consist of a Director General and as many
Directors, Additional Directors, Deputy Directors, Assistant Directors and
such other officers as the Board may, by notification in the official Gazette,
appoint.
(2) The Board may, by notification in the official Gazette,—
(a) specify the functions, jurisdiction and powers of the
Directorate General of Valuation and its officers; and
(b) confer the powers of authorities specified in section 207
upon the Directorate General and its officers.”;
132
(54) in section 231B, in sub-section (1A), for the expression “non-filer”, the
expression “person whose name is not appearing in the active taxpayers' list”
shall be substituted;
(55) in section 233, for the word, "final", wherever occurring, the word "minimum"
shall be substituted;
(56) in section 234A, in sub-section (3), for the word "final" the word "minimum"
shall be substituted;
(57) in section 236C, in sub-section (3), for the word “three”, the word “five” shall
be substituted;
(58) in section 236P,─
(a) in sub-section (1), for the expression “non-filer”, the expression
“person whose name is not appearing in the active taxpayers' list”
shall be substituted; and
(b) in sub-section (2), for the expression “non-filer”, the expression
“person whose name is not appearing in the active taxpayers' list”
shall be substituted;
(59) in section 236U, in sub-section (1), for the expression “non-filers”, the
expression “a person whose name is not appearing in the active taxpayers'
list” shall be substituted;
(60) section 236W shall be omitted;
(61) in the First Schedule,—
(A) in Part I,—
133
(a) for Division I, the following shall be substituted, namely:—
“Division I
[Rates of Tax for Individuals and
Association of Persons]
(1) Subject to clause (2), the rates of tax imposed on
income of every individual and association of persons except a
salaried individual shall be as set out in the following Table, namely:—
TABLE
S. No Taxable Income Rate of Tax
(1) (2) (3)
1. Where taxable income does not
exceed Rs. 400,000
0%
2. Where taxable income exceeds
Rs. 400,000 but does not
exceed Rs. 600,000
5% of the amount
exceeding Rs. 400,000
3. Where taxable income exceeds
Rs. 600,000 but does not
exceed Rs. 1,200,000
Rs. 10,000 plus 10% of
the amount exceeding
Rs. 600,000
4. Where taxable income exceeds
Rs. 1,200,000 but does not
Rs. 70,000 plus 15% of
the amount exceeding
134
exceed Rs. 2,400,000 Rs. 1,200,000
5 Where taxable income exceeds
Rs. 2,400,000 but does not
exceed Rs. 3,000,000
Rs. 250,000 plus 20% of
the amount exceeding
Rs. 2,400,000
6 Where taxable income exceeds
Rs. 3,000,000 but does not
exceed Rs. 4,000,000
Rs. 370,000 plus 25% of
the amount exceeding
Rs. 3,000,000
7. Where taxable income exceeds
Rs. 4,000,000 but does not
exceed Rs. 6,000,000
Rs. 620,000 plus 30% of
the amount exceeding
Rs. 4,000,000
8. Where taxable income exceeds
Rs. 6,000,000
Rs. 1,220,000 plus 35%
of the amount exceeding
Rs. 6,000,000
(2) Where the income of an individual chargeable under the
head “salary” exceeds seventy-five per cent of his taxable income, the
rates of tax to be applied shall be as set out in the following Table,
namely:—
TABLE
S. No Taxable Income Rate of Tax
(1) (2) (3)
135
1. Where taxable income does not
exceed Rs. 600,000
0%
2. Where taxable income exceeds
Rs. 600,000 but does not
exceed Rs. 1,200,000
5% of the amount
exceeding Rs. 600,000
3. Where taxable income exceeds
Rs. 1,200,000 but does not
exceed Rs. 1,800,000
Rs. 30,000 plus 10% of
the amount exceeding
Rs. 1,200,000
4. Where taxable income exceeds
Rs. 1,800,000 but does not
exceed Rs. 2,500,000
Rs. 90,000 plus 15% of
the amount exceeding
Rs. 1,800,000
5. Where taxable income exceeds
Rs. 2,500,000 but does not
exceed Rs. 3,500,000
Rs. 195,000 plus 17.5%
of the amount
exceeding Rs.
2,500,000
6. Where taxable income exceeds
Rs. 3,500,000 but does not
exceed Rs. 5,000,000
Rs. 370,000 plus 20%
of the amount
exceeding Rs.
3,500,000
7. Where taxable income exceeds
Rs. 5,000,000 but does not
Rs. 670,000 plus 22.5%
of the amount
136
exceed Rs. 8,000,000 exceeding Rs.
5,000,000
8. Where taxable income exceeds
Rs. 8,000,000 but does not
exceed Rs. 12,000,000
Rs. 1,345,000 plus 25%
of the amount
exceeding Rs.
8,000,000
9. Where taxable income exceeds
Rs. 12,000,000 but does not
exceed Rs.30,000,000
Rs. 2,345,000 plus
27.5% of the amount
exceeding Rs.
12,000,000
10. Where taxable income exceeds
Rs. 30,000,000 but does not
exceed Rs.50,000,000
Rs. 7,295,000 plus 30%
of the amount
exceeding Rs.
30,000,000
11. Where taxable income exceeds
Rs. 50,000,000 but does not
exceed Rs.75,000,000
Rs. 13,295,000 plus
32.5% of the amount
exceeding Rs.
50,000,000
12. Where taxable income exceeds
Rs.75,000,000
Rs. 21,420,000 plus
35% of the amount
exceeding Rs.
137
75,000,000";
(b) in Division II, in clause (i), in the third proviso,—
(i) for the word “and”, occurring for the first time, a
“comma” shall be substituted;
(ii) for the expression “thereafter as set out in the following
Table, namely:—”, the expression “29% for tax year
2019 and onwards.” shall be substituted; and
(iii) the Table shall be omitted.
(c) in Division III,—
(i) in paragraph (a), for the figure "7.5" the figure "15"shall
be substituted;
(ii) in paragraph (b), for the expression " (a) and (c)" the
expression "(a) and (d)" shall be substituted;
(iii) paragraph (c) and provision thereafter shall be omitted;
(iv) after paragraph (c), omitted as aforesaid, the following
new paragraph shall be added, namely:—
"(d) 25% in the case of a person receiving dividend
from a company where no tax is payable by such
company due to exemption of income or carry
forward of business losses under Part VIII of
Chapter III or claim of tax credits under Part X of
Chapter III.";
138
(d) in Division IIIA, for the Table, the following shall be substituted,
namely:—
“Table
S. No. Profit on debt Rate of tax
(1) (2) (3)
1. Where profit on debt does not exceed
Rs.5,000,000
15%
2. Where profit on debt exceeds Rs.5,000,000 but
does not exceed Rs.25,000,000
17.5%
3. Where profit on debt exceeds Rs.25,000,000
but does not exceed Rs.36,000,000
20%
(e) in Division VIA, in the Table, in column (1),—
(i) against S.No.5, in column (2), after the
figure"2,000,000", the expression "but does not exceed
Rs.4,000,000" shall be inserted;
(ii) after S. No. 5 and entries relating thereto in columns
(2) and (3), the following new serial numbers and
corresponding entries relating thereto shall be inserted,
namely:-
“6. Where the gross amount of rent Rs.610,000 plus 25 per cent
139
exceeds Rs.4,000,000 but does
not exceed Rs.6,000,000.
of the gross amount
exceeding Rs.4,000,000
7. Where the gross amount of rent
exceeds Rs.6,000,000 but does
not exceed Rs.8,000,000
Rs.1,110,000 plus 30 per
cent of the gross amount
exceeding Rs.6,000,000
8. Where the gross amount of rent
exceeds Rs.8,000,000
Rs.1,710,000 plus 35
percent of the gross amount
exceeding Rs.8,000,000”;
(f) in Division VII,─
(i) for the Table, excluding the provisos, the following new
Table shall be substituted,—
"S.No Period Tax
Year
2015
Tax
Year
2016
Tax
Year
2017
Tax Years
2018, 2019 and
2020
Secur
ities
acqui
red
befor
e
01.07
Securiti
es
acquire
d after
01.07.2
016
140
.2016
(1) (2) (3) (4) (5) (6) (7)
1. Where holding period
of a security is less
than twelve months
12.5% 15% 15% 15% 15%
2. Where holding period
of a security is twelve
months or more but
less than twenty-four
months
10% 12.5% 12.5
%
12.5
%
3. Where holding period
of a security is twenty
- four months or more
but the security was
acquired on or after
1st July, 2013.
0% 7.5% 7.5% 7.5%
4. Where the security
was acquired before
1st July, 2013
0% 0% 0% 0% 0%
5. Future commodity
contracts entered into
0% 0% 5% 5% 5%";
and
141
(g) in th
(ii) in the fifth proviso, after the full stop at the end, the
following explanation shall be added, namely:-
“Explanation.— For removal of doubt, it is clarified that,
the provisions of this proviso shall be applicable only in case of
a mutual fund or collective investment scheme or a REIT
scheme.";
(h) Division VIII shall be omitted; and
(i) in Division IX, in the Table, in column (1), against serial
numbers 1 to 4, for the entries in column (3), the following
shall respectively be substituted, namely:—
“0.75%
0.25%
0.3%
1.5%”;
(B) in Part II,—
by the members of
Pakistan Mercantile
Exchange
142
(a) for the Table, the following shall be substituted, namely—
"S.
No.
Persons Rate
(1) (2) (3)
1. (i) Industrial undertaking
importing remeltable steel
(PCT Heading 72.04) and
directly reduced iron for its
own use;
(ii) Persons importing
potassic fertilizers in
pursuance of Economic
Coordination Committee of
the cabinet’s decision
No.ECC-155/12/2004
dated the 9th December,
2004;
(iii) Persons importing urea;
(iv) Manufacturers covered
under Notification No.
S.R.O. 1125(I)/2011 dated
the 31st December, 2011
1% of the import
value as increased
by customs-duty,
sales tax and federal
excise duty
143
and importing items
covered under S.R.O.
1125(I)/2011 dated the
31st December, 2011;
(v) Persons importing Gold;
(vi) Persons importing Cotton;
and
(vii) Persons importing LNG]
2. Persons importing pulses 2% of the import
value as increased
by customs-duty,
sales tax and federal
excise duty
3. Commercial importers covered
under Notification No. S.R.O.
1125(I)/2011 dated the 31st
December, 2011 and importing
items covered under S.R.O.
1125(I)/2011 dated the 31st
December, 2011.
3% of the import
value as increased
by customs-duty,
sales tax and federal
excise duty
4. Persons importing coal 4%
144
5. Persons importing finished
pharmaceutical products that
are not manufactured otherwise
in Pakistan, as certified by the
Drug Regulatory Authority of
Pakistan
4%
6. Ship breakers on import of
ships
4.5%
7. Industrial undertakings not
covered under S. Nos. 1 to 6
5.5%
8. Companies not covered under
S. Nos. 1 to 7
5.5%
9. Persons not covered under S.
Nos. 1 to 8
6%"; and
(b) in the proviso, the expression “being a filer;”, wherever
occurring, shall be omitted;
(C) in Part III,—
(a) in Division I,—
(i) in paragraph (a), for the expression "7.5%" the
expression "15%" shall be substituted;
(ii) in paragraph (b), the words "for filers" shall be omitted;
145
(iii) paragraph (c) and provisos thereafter shall be omitted;
(b) in Division IA,—
(i) for the figure “10”, the figure “15” shall be substituted;
(ii) the expression “for filers and “17.5%” of the yield orprofit
paid, for non-filers:” shall be omitted; and
(iii) for the proviso, the following shall be substituted,
namely:—
"Provided that the rate shall be 10% in cases
where yield or profit paid is rupees five hundred
thousand rupees or less.";
(c) in Division IB, paragraph (d) shall be omitted;
(d) in Division II,—
(i) in clause (1), the expression “in case a person is a filer
and 13% in case the person is a non-filer” shall be
omitted;
(ii) in clause (4),—
(a) in sub-clause (i), the expression “, if the company
is a filer and 7% if the company is a non-filer”
shall be omitted; and
(b) in sub-clause (ii), the expression “, if the person
is a filer and 7.75% if the person is a non-filer”
shall be omitted;
146
(iii) in clause (5), in sub-clause (ii),—
(a) in paragraph (a), the expression “, if the company
is a filer and 14% if the company is a non-
filer” shall be omitted; and
(b) in paragraph (b), the expression “, if the person a
filer and 17.5% if the person is a non-filer” shall
be omitted;
(iv) in clause (6), in sub-clause (ii),—
(a) the expression “in case a person is a filer;” shall
be omitted; and
(b) the expression “and 13% if the person is a non
filer,” shall be omitted;
(e) in Division III,—
(i) in clause (1), in sub-clause (b),—
(a) in paragraph (i), the expression “, if the company
is a filer and 8% if the company is a non-filer”
shall be omitted; and
(b) in paragraph (ii), the expression “, if the person is
a filer and 9% if the person is a non-filer” shall be
omitted;
(ii) for clause (2), the following shall be substituted,
namely:—
147
“(2) The rate of tax to be deducted from a
payment referred to in clause (b) of sub-section (1) of
section 153 shall be—
(i) 4% of the gross amount payable, in the cases of
transport services, freight forwarding services, air
cargo services, courier services, manpower
outsourcing services, hotel services, security
guard services, software development services,
IT services and IT enabled services as defined in
clause (133) of Part I of the Second Schedule,
tracking services, advertising services (other than
by print or electronic media), share registrar
services, engineering services, car rental
services, building maintenance services, services
rendered by Pakistan Stock Exchange Limited
and Pakistan Mercantile Exchange Limited
inspection, certification, testing and training
services;
(ii) in case of rendering of or providing of services
other than sub-clause (i),—
(a) in case of a company, 8% of the gross
amount payable;
(b) in any other case, 10% of the gross
amount payable; and
148
(c) in respect of persons making payments to
electronic and print media for advertising
services,1.5% of the gross amount
payable;”;
(iii) in clause (3),—
(a) in sub-clause (ii), the expression “, if the
company is a filer and 14% if the
company is a non-filer” shall be omitted;
and
(b) in sub-clause (iii), the expression “, if the
person is a filer and 15% if the person is a
non filer” shall be omitted;
(f) after the omitted Division IIIA, the following new Division shall
be inserted, namely:—
“Division IIIB
Royalty paid to resident persons
The rate of tax to be deducted under section 153B shall
be 15% of the gross amount payable.”;
(g) in Division V, in clause (a), in the Table, in column (1), —
(i) against S.No.5, in column (2), after the figure
"2,000,000", the expression "but does not exceed
Rs.4,000,000" shall be inserted;
149
(ii) after S. No.5 and entries relating thereto in columns (2)
and (3), the following new serial numbers and
corresponding entries relating thereto shall be inserted,
namely:-
“6. Where the gross amount of rent
exceeds Rs. 4,000,000 but does
not exceed Rs. 6,000,000.
Rs. 610,000 plus 25 per
cent of the gross amount
exceeding Rs. 4,000,000
7. Where the gross amount of rent
exceeds Rs. 6,000,000 but does
not exceed Rs. 8,000,000
Rs. 1,110,000 plus 30 per
cent of the gross amount
exceeding Rs. 6,000,000
8. Where the gross amount of rent
exceeds Rs. 8,000,000
Rs. 1,710,000 plus 35
percent of the gross
amount exceeding Rs.
8,000,000”;
(iii) in clause (b), the expression “for filers and 17.5% of the
gross amount of rent for non-filers” shall be omitted;
(h) in Division VI, in clause (1), the expression “for filers and 25%
of the gross amount paid for non-filers” shall be omitted;
(i) in Division VIA, the expression “for filers and 17.5% for non
filers” shall be omitted;
150
(j) in Division VIB, the expression “for filers and six per cent for
non-filers” shall be omitted;
(D) in Part IV,—
(a) for Division II, the following shall be substituted, namely:—
“Division II
BROKERAGE AND COMMISSION
The rate of tax for deduction or collection under section 233 shall be
as set out in the following Table, namely:—
TABLE
S. No. Person Rate of tax
(1) (2) (3)
1. Advertising agents 10%
2. Life insurance agents where commission
received is less than Rs. 0.5 million per
annum
8%
3. Persons not covered in 1 and 2 above 12%”;
(b) in Division III,—
(i) in clause (1), the expression “for filer and four rupees
per kilogram of the laden weight for non-filer” shall be
omitted;
151
(ii) in clause (2), for the Table, the following shall be
substituted, namely:—
"S.
No.
Capacity Rs. per seat
per annum
(1) (2) (3)
1. Four or more persons but less than ten
persons.
50
2. Ten or more persons but less than
twenty persons.
100
3. Twenty persons or more. 300”;
(iii) for clause (3), the following shall be substituted,
namely:—
“(3) In case of other private motor vehicles shall be
as set out in the following Table, namely:—
S. No. Engine Capacity Rs. per seat
per annum
(1) (2) (3)
1. upto 1000cc Rs. 800
2. 1001cc to 1199cc Rs. 1,500
152
3. 1200cc to 1299cc Rs. 1,750
4. 1300cc to 1499cc Rs. 2,500
5. 1500cc to 1599cc Rs. 3,750
6. 1600cc to 1999cc Rs. 4,500
7. 2000cc & above Rs. 10,000”;
(iv) in clause (4), for the Table, the following shall be
substituted, namely:—
"S.
No.
Engine Capacity Rs. per seat
per annum
(1) (2) (3)
1. upto 1000cc Rs. 10,000
2. 1001cc to 1199cc Rs. 18,000
3. 1200cc to 1299cc Rs. 20,000
4. 1300cc to 1499cc Rs. 30,000
5. 1500cc to 1599cc Rs. 45,000
6. 1600cc to 1999cc Rs. 60,000
7. 2000cc & above Rs. 120,000”;
153
(c) in Division VI, for the expression “non-filer”, the words “the
person whose name is not appearing in the active taxpayers’
list” shall be substituted;
(d) in Division VIA, for the expression “non-filer”, the words “the
person whose name is not appearing in the active taxpayers’
list” shall be substituted;
(e) in Division VII,—
(i) for clause (1), the following shall be substituted,
namely:—
“(1) The rate of tax under sub-sections (1) and (3) of
section 231B shall be as set out in the following
Table:—
S. No. Engine capacity Rs. per seat
per annum
(1) (2) (3)
1. upto 850cc Rs. 7,500
2. 851cc to 1000cc Rs. 15,000
3. 1001cc to 1300cc Rs. 25,000
4. 1301cc to 1600cc Rs. 50,000
5. 1601cc to 1800cc Rs. 75,000
154
6. 1801cc to 2000cc Rs. 100,000
7. 2001cc to 2500cc Rs. 150,000
8. 2501cc to 3000cc Rs. 200,000
9. Above 3000cc Rs. 250,000”;
(ii) for clause (2), the following shall be substituted,
namely:—
“(2) The rate of tax under sub-sections
(2) of section 231B shall be as follows:–
S. No. Engine Capacity Rs. per seat
per annum
(1) (2) (3)
1. upto 850cc -
2. 851cc to 1000cc Rs. 5,000
3. 1001cc to 1300cc Rs. 7,500
4. 1301cc to 1600cc Rs. 12,500
5. 1601cc to 1800cc Rs. 18,750
6. 1801cc to 2000cc Rs. 25,000
155
7. 2001cc to 2500cc Rs. 37,500
8. 2501cc to 3000cc Rs. 50,000
9. Above 3000cc Rs. 62,500”;
(f) in Division VIII, the expression “for filers and 15% of the gross
sale price of any property or goods sold by auction for non-
filers” shall be omitted;
(g) in Division X, the expression “for filers and 2 % of the gross
amount of the consideration received for non-filers” shall be
omitted;
(h) for Division XIV, the following shall be substituted, namely:—
“Division XIV
Advance tax on sale to distributors, dealers or wholesalers
The rate of collection of tax under section 236G shall be as set
out in the following table, namely:—
TABLE
S. No. Category of sale Rate of tax
(1) (2) (3)
1. Fertilizers 0.7%
2. Other than fertilizers 0.1%”;
(i) for Division XV, the following shall be substituted, namely:—
156
“Division XV
Advance tax on sale to retailers
The rate of collection of tax under section 236H on the gross
amount of sales shall be as set out in the following table, namely:—
TABLE
S. No. Category of sale Rate of tax
(1) (2) (3)
1. Electronics 1%
2. Others 0.5%”;
(j) in Division XVA, the expression “for filers and 1% for non-filers”
shall be omitted;
(k) for Division XVII, the following shall be substituted, namely:—
“Division XVII
Advance tax on dealers, commission agents and arhatis, etc.
The amount of collection of tax under section 236J shall be as
set out in the following Table, namely:—
TABLE
Group or Class Amount of tax (per annum)
Group or Class A Rs. 100,000
157
Group or Class B Rs. 75,000
Group or Class C Rs. 50,000
Any other category Rs. 50,000”;
(l) for Division XVIII, the following shall be substituted, namely:—
““Division XVIII
Advance tax on purchase of immovable property
The rate of tax to be collected under section 236K shall be 1%
of the fair market value.”;
(m) in Division XXI, for the expression “non-filer”, the words
“persons who are not appearing in the active taxpayers’ list”
shall be substituted;
(n) in Division XXV, for the expression “non-filer”, the words
“persons who are not appearing in the active taxpayers’ list”
shall be substituted;
(o) in Division XXVI, for the expression “non-filers and 0% for
filers”, the words “ persons who are not appearing in the active
taxpayers’ list” shall be substituted;
(p) in Division, XXVII, the expression “for filers and 3% for non-
filers” shall be omitted;
(61) in the Second Schedule,—
(A) in Part I,—
158
(a) in clause (39A), after the word "as", the words and commas
"internal security allowance, compensation in lieu of bearer
allowance," shall be inserted;
(b) in clause (61), after sub-clause (liv), the following new clause
shall be added, namely:—
"(lv) Layton Rahmatullah Benevolent Trust (LRBT).
(lvi) Akhuwat.”;
(c) in clause (66), after clause (lxv), the following new clauses shall
be added, namely:—
"(lxvi) Akhuwat.
(lxvii) Audit Oversight Board."
(d) in clause (99A), in the proviso, after the figure “2020” at the
end, a colon shall be added and thereafter a new proviso shall
be added, namely:—
“Provided further that the profit and gains on sale of
immovable property to a rental REIT scheme shall be exempt
up to the 30th day of June, 2021."
(d) in clause (103C), for the words "has availed", the words "is
eligible for" shall be substituted.;
(e) after clause (114), the following new clause shall be added,
namely:—
159
"(114B) Profit and gains accruing to persons mentioned in
proviso to sub-section (1) of section 236C in respect of first
sale of immovable property acquired from or allotted by the
Federal Government or Provincial Government or any authority
duly certified by the official allotment authority, and the property
acquired or allotted is in recognition of services rendered by the
Shaheed or the person who dies in service.";
(f) after the omitted clause (145), the following new clause shall
be added, namely:─
“(146) Any income which was not chargeable to tax prior
to the commencement of the Constitution (Twenty-fifth
Amendment) Act, 2018 (XXXVII of 2018) of any individual
domiciled or company and association of persons resident in
the Tribal Areas forming part of the Provinces of Khyber
Pakhtunkhwa and Balochistan under paragraph (d) of Article
246 of the Constitution with effect from the 1st day of June,
2018 to the 30th day of June, 2023 (both days inclusive); and
(B) in Part III,—
(a) in clause (2),—
(i) the words “training and” shall be omitted;
(ii) for the figure “40”, the figure “25” shall be substituted;
and
160
(iii) for the full stop at the end, a colon shall be substituted
and thereafter the following new proviso shall be
inserted, namely:—
“Provided that this clause shall not apply to
teachers of medical profession who derive income from
private medical practice or who receive share of
consideration received from patients.”;
(b) after clause (9), the following new clause shall be added,
namely:—
"(9A) The amount of tax payable on income chargeable under
the head, "Capital Gains" on disposal of immovable property
shall be reduced by fifty percent on the first sale of immovable
property acquired or allotted to ex-servicemen and serving
personnel of Armed Forces or ex-employees or serving
personnel of Federal and Provincial Governments, being
original allottees of the immovable property, duly certified by
the allotment authority.";
(C) in Part IV,—
(a) in clause (43E), for the figure “2.5”, the figure “3” shall be
substituted;
(b) clauses (81) and (81A) shall be omitted;
(c) clause (94) shall be omitted;
(d) clause (105) shall be omitted;
161
(e) after clause (109), the following new clause shall be added,
namely;─
“(110) The provisions of sections in Division III of Part V
of Chapter X and Chapter XII of this Ordinance for deduction or
collection of withholding tax which were not applicable prior to
commencement of the Constitution (Twenty-fifth Amendment)
Act, 2018 (XXXVII of 2018) shall not apply to individual
domiciled or company and association of persons resident in
the Tribal Areas forming part of the Provinces of Khyber
Pakhtunkhwa and Balochistan under paragraph (d) of Article
246 of the Constitution with effect from the 1st day of June,
2018 to the 30th day of June, 2023 (both days inclusive).";
(62) in the Third Schedule, in Part II, in paragraph (1), the expression “and 15%
for buildings” shall be omitted;
(63) in the Fourth Schedule, after rule 6D, the following new rule shall be inserted,
namely:—
“6E. Notwithstanding anything contained in this Schedule, the
Commissioner shall be authorized to examine and amend the amount of
income as disclosed in the financial statement presented to the Securities
and Exchange Commission of Pakistan with respect to commission paid and
claimed for losses.”;
(64) in the Seventh Schedule,—
(A) in rule 1,—
162
(a) in clause (c), after the second proviso, the following explanation
shall be added, namely:—
“Explanation.— For removal of doubt, it is clarified
that—
(i) provision for advances and off balance sheet items
allowed under this clause, at the rate of 1 percent or 5
percent, as the case may be, shall be exclusive of
reversals of such provisions;
(ii) reversal of “bad debts” classified as “doubtful” or “ loss”
are taxable as the respective provisions have been
allowed under this clause; and
(iii) with effect from tax year 2020 and onward; reversal of
“bad debts” classified as “ loss” are taxable as the
respective provisions have been allowed under this
clause."
(b) in clause (d), after the expression, ""sub-standard"", the
expression "or "doubtful"" shall be inserted;
(c) in clause (e), the expression "as 'doubtful' or" shall be omitted;
(d) after clause (h), the following explanation shall be added,
namely:—
“Explanation.— For removal of doubt, it is clarified that
nothing contained in this Schedule shall be so construed as to
163
restrict power of Commissioner, while conducting audit of the
income tax affairs under section 177, to call for record or such
other information and documents as he may deem appropriate
in order to examine accounts and records to conduct enquiry
into expenditure, income, assets and liabilities of a banking
company and all provisions of this Ordinance shall be applicable
accordingly.";
(B) after omitted rule 6B, the following new rule shall be inserted,
namely:—
"6C. Enhanced rate of tax on taxable income from Federal
Government securities.— (1) The taxable income arising from
additional income earned from additional investment in Federal
Government securities for the tax years 2020 and onwards, shall be
taxed at the rate of 37.5% instead of the rate provided in Division II of
Part I of the First Schedule-
(2) A banking company shall furnish a certificate from external
auditor along with accounts while e-filing return of Income certifying
the amount of such money invested in Federal Government securities
in preceding tax year, additional investments made for the tax year
and net mark-up earned from such additional investments for the tax
year.
(3) Notwithstanding anything contained in this Ordinance, the
Commissioner may require the banking company to furnish details of
164
the investments in Federal Government securities to determine the
applicability of the enhanced rate of tax.
(4) “Additional income earned" means any average earned in
addition to average amount of such income earned from investment in
Federal Government securities by the bank for the tax year.
(5) The taxable income arising from additional investment
under sub-rule (1) shall be determined according to the following
formula, namely:-
Taxable income subject to enhanced rate of tax = A x B/C
Where-
A. is taxable income of the banking company;
B is net mark up income earned from such additional income earned
for the tax year as declared in the annual accounts; and
C is total of the net mark-up and non mark-up income of the banking
company as per accounts.";
(C) in rule (7C), for full stop at the end a colon shall be substituted and
thereafter the following proviso shall be added, namely:—
"Provided that brought forward losses, if any, shall be excluded
from income computed under this Schedule for the purpose of section
4B of this Ordinance."; and
(D) in rule 7D, in sub-rule (1), the words "interest income" shall be omitted;
165
(65) after the Ninth Schedule, the following new Schedule shall be added,
namely:-
"THE TENTH SCHEDULE
(See section 100BA)
RULES FOR PERSONS NOT APPEARING IN THE ACTIVE TAXPAYERS' LIST
1. Rate of deduction or collection of tax—Where tax is required to be
deducted or collected under any provision of this Ordinance from persons not
appearing in the active taxpayers' list, the rate of tax required to be deducted
or collected, as the case may be, shall be increased by hundred percent of
the rate specified in the First Schedule to this Ordinance.
2. Persons not required to file return or statement.—(1) Where the
withholding agent is satisfied that a person not appearing in the active
taxpayers' list was not required to file a return of income under section 114, or
a statement under sub-section (4) of section 115, as the case may be, he
shall before collecting or deducting tax under this Ordinance, furnish to the
Commissioner a notice in writing electronically setting out—
(a) the name, CNIC or NTN and address of the person not
appearing in the active taxpayers' list;
(b) the nature and amount of the transaction on which tax is
required to be collected or deducted; and
(c) reason on the basis of which it is considered that the person
was not required to file return or statement, as the case may
be.
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(2) The Commissioner, on receipt of a notice under sub-rule (1),
shall within thirty days pass an order accepting the contention or making the
order under sub-rule (3).
(3) Where the withholding agent has notified the Commissioner
under sub-rule (1) and the Commissioner has reasonable grounds to believe
that the person not appearing in the active taxpayers' list was required to file
return or statement, as the case may be, the Commissioner may, by an order
in writing, direct the withholding agent to deduct or collect tax under rule 1:
Provided that in case the Commissioner does not pass any order
within thirty days of receipt of notice under sub-rule (1), the Commissioner
shall be deemed to have accepted the contention under sub-rule (2) and
approval shall be treated to have been granted.
3. Provisional assessment.—(1) Where for a tax year a person's tax
has been collected or deducted in accordance with rule 1 and the person fails
to file return of income or statement, as the case may be, for that tax year
within the due date provided in section 118 or as extended by the Board, the
Commissioner shall notwithstanding anything contained in sub-sections (3)
and (4) of section 114 or sub-section (5) of section 115, within sixty days of
the due date provided in section 118 or as extended by the Board make a
provisional assessment of the taxable income of the person and issue a
provisional assessment order specifying the taxable income assessed and
tax due thereon.
(2) In making the provisional assessment under sub-rule (1), the
Commissioner shall impute taxable income on the amount of tax deducted or
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collected under rule 1 by treating the imputed income as concealed income
for the purposes of clause (d) of sub-section (1) of section 111.
4. Finalization or abatement of provisional assessment.—(1) The
provisional assessment under rule 3, shall be treated as the final assessment
order after the expiry of forty-five days from the date of service of order of
provisional assessment and the provisions of this Ordinance shall apply
accordingly.
(2) The provisional assessment shall stand abated and shall be
taken to be assessment finalized under sub-section (1) of section 120 where
the returns of income for the relevant tax year and the preceding tax year
along with prescribed forms, statements or documents are filed by the person
within a period of forty-five days of receipt of provisional assessment order.
(3) Where returns have been filed before provisional assessment
or under sub-rule (2), the tax deducted or collected under rule 1 shall be
adjustable against the tax payable in the return filed for the relevant tax year.
5. Where the provisional assessment has been treated as final
assessment under sub-rule (1) of rule 4, the Commissioner may within thirty
days of the final assessment initiate proceedings for imposition of penalties
under section 182 on account of non-furnishing of return and concealment of
income.
6. For the purposes of this Schedule, imputed income means—
(a) income for individuals and association of persons which would
have resulted in the amount of tax given in paragraph (1) of
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Division I of the First Schedule equal to the tax collected or
deducted under rule 1 for not appearing in the active taxpayers'
list; or
(b) income for companies which would have resulted in the
amount of tax given in Division II of the First Schedule equal to
the tax collected or deducted at the higher rate under rule 1 for
not appearing in the active taxpayers' list.
7. Where the withholding agent fails to furnish in the withholding
statement complete or accurate particulars of persons not appearing on
active taxpayers' list, the Commissioner shall initiate proceedings under
sections 182 and 191 against the withholding agent within thirty days of filing
of withholding statement under section 165.
8. Amendment of assessment.— (1) The Commissioner may
amend an assessment order where on the basis of definite information
acquired from an audit or otherwise, the Commissioner is satisfied that—
(a) any income chargeable to tax has escaped assessment; or
(b) total income has been under-assessed, or assessed at too low
a rate, or has been the subject of excessive relief or refund; or
(c) any amount under a head of income has been misclassified.
(2) Notwithstanding the provisions of sub-rule (1), where a
provisional assessment has been treated as final assessment or where in
response to the provisional assessment, return has been filed within forty-
five days or where assessment has been amended under sub-rule (1) and the
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assessment order is considered erroneous in so far it is prejudicial to the
interest of revenue, the Commissioner may, after making or causing to be
made, such enquiries as he deems necessary, amend the assessment order.
(3) For the purposes of sub-rule (1), "definite information" shall
have the same meaning as defined in sub-section (8) of section 122.
9. Provisions of Ordinance to apply—The provisions of this
Ordinance not specifically dealt with in the aforesaid rules shall apply, mutatis
mutandis, in the case of proceedings against the persons not appearing on
active taxpayers' list.
10. The provisions of this Schedule shall not apply on tax
collectible or deductible in case of the following sections:-
(a) tax deducted under section 149;
(b) tax deducted under section 152 other than sub-section (1), (1AA), (2),
(2A)(b) and (2A)(c) of section 152
(c) tax collected or deducted under section 154;
(d) tax deducted under section 155;
(e) tax deducted under section 156B.
(f) tax deducted under section 231A;
(g) tax deducted under section 231AA;
(h) tax collected under section 233AA;
(i) tax deducted under section 235;
(j) tax deducted under section 235A;
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(k) tax collected under section 235B;
(l) tax collected under section 236B;
(m) tax collected under section 236D;
(n) tax collected under section 236F;
(o) tax collected under section 236I;
(p) tax collected under section 236J ;
(q) tax collected under section 236L;
(r) tax collected under section 236P;
(s) tax collected under section 236Q;
(t) tax collected under section 236R;
(u) tax collected under section 236U;
(v) tax collected under section 236V;
(w) tax collected under section 236X.".
14 Amendments of the Federal Excise Act, 2005.- In the Federal Excise Act, 2005,
the following further amendments shall be made, namely:−
(1) in section 2, in clause (23a), for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge," shall be
substituted;
(2) in section 3, after sub-section (5), the following new sub-section shall be
inserted, namely:−
“(5A) In respect of goods, specified in the Fourth Schedule, the
minimum production for a month shall be determined on the basis of a single
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or more inputs as consumed in the production process as per criterion
specified in the Fourth Schedule and if minimum production so determined
exceeds the actual supplies for the month, such minimum production shall be
treated as quantity supplied during the month and the liability to pay duty shall
be discharged accordingly.”;
(3) in section 7, in sub-section (2), for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge," shall be
substituted;
(4) in section 16, for sub-section (2), the following shall be substituted, namely:−
“(2) The Federal Government may, whenever circumstances exist to take
immediate action for the purposes of national security, natural disaster,
national food security in emergency situations and implementation of bilateral
and multilateral agreements, by notification in the official Gazette, exempt
subject to such conditions as may be specified therein, any goods or class of
goods or any services or class of services from the whole or any part of the
duty leviable under this Act.”;
(5) in section 19, in sub-section (2),−
(a) in clause (b), the word "and" at the end shall be omitted;
(b) in clause (c), after the semi-colon at the end, the word “and” shall be
added, and thereafter, following new clause shall be added, namely:–
“(d) a person who sells cigarettes in retail at a price lower than the
retail price plus the amount of sales tax as printed thereon,”;
(6) after section 19, amended as aforesaid, the following new section shall be
inserted, namely:−
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“19A. Proceedings against persons.– (1) Subject to section 41, the
Board shall prescribe rules for initiating criminal proceedings against any
authority mentioned in section 29 including any person subordinate to the
aforesaid authorities, who wilfully and deliberately commits or omits an act
which results in personal benefits and undue advantage to the authority or the
person or taxpayer or both.
(2) Where proceedings under sub-section (1) have been initiated
against a person or authority, the Board shall simultaneously intimate the
relevant government agency to initiate criminal proceedings against the
taxpayer.
(3) The proceedings under this section shall be without prejudice
to any liability that the authority, person or taxpayer may incur under any
other law for the time being in force.
(7) in section 22, in sub-section (13), for the words “Federal Government”, the
expression “Board, with the approval of the Minister-in-charge," shall be
substituted;
(8) In the First Schedule,–
(I) in Table, in column (1),–
(a) against S. No. 1, in column (4), for the figure “sixteen”, the
figure “seventeen” shall be substituted;
(b) for S. No. 2, and entries relating thereto in columns (2), (3) and
(4), the following shall be substituted, namely:−
“2. Vegetable ghee and
cooking oil
Respective
heading
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(a) in retail packing Seventeen
per cent of
retail price
(b) not in retail packing Seventeen
per cent ad
val.”;
(c) against S. No. 4, 5 and 6, in column (4), for the words “eleven
and half”, the word “fourteen” shall be substituted;
(d) against S. No. 7, in column (2), after the word “tobacco”,
following explanation shall be added, namely:−
“Explanation:– The duty payable under this serial
number shall always be borne by the cigarette manufacturer
and the burden thereof shall not be passed on to the tobacco
grower in any manner.”;
(e) for S. No. 9 and 10and the entries relating thereto in columns
(2), (3) and (4), the following shall be substituted, namely:–
“9. Locally produced
cigarettes if their on-
pack printed retail price
exceeds five thousand
nine hundred and sixty
24.02 Rupees five thousand
two hundred per
thousand cigarettes
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rupees per thousand
cigarettes.
10. Locally produced
cigarettes if their on-
pack printed retail price
does not exceed five
thousand nine hundred
and sixty rupees per
thousand cigarettes.
24.02 Rupees one thousand
six hundred and fifty
per thousand
cigarettes”;
(f) S. No. 10a and entries relating thereto in columns (2), (3) and
(4) shall be omitted;
(g) against S. No. 13, in column (4), for the words “one rupee and
fifty paisa”, the words “two rupees” shall be substituted;
(h) against S. No. 31, in column (4), for the words “Seventeen
rupees and eighteen paisa per hundred cubic meters”, the
expression “ten rupees per Million British Thermal Unit
(MMBTu)” shall be substituted;
(i) S. No. 54 and entries relating thereto in columns (2), (3) and (4)
shall be omitted;
(j) for S. No. 55B and entries relating thereto in columns (2), (3)
and (4),the following shall be substituted, namely:–
“55B Locally manufactured or assembled
motor cars, SUVs and other motor
vehicles, principally designed for the
87.03
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transport of persons (other than
those of headings 87.02), including
station wagons and racing cars:
(a) of cylinder capacity up to 1000cc 2.5% ad
val.
(b) of cylinder capacity from 1001cc
to 2000cc
5% ad
val.
(c) of cylinder capacity 2001cc and
above
7.5% ad
val.
(k) after S. No. 56 and the entries relating thereto in columns (2),
(3) and (4), the following new serial numbers and
corresponding entries relating thereto shall be added, namely:–
“57 Fruit juices, syrups and
squashes, waters
containing added sugar
or sweetening matter
etc. excluding mineral
and aerated waters
Respective
headings
Five percent
of retail price.
58 Steel Billets, ingots,
ship plates, bars and
other long re-rolled
products
Respective
headings
Seventeen
percent ad
val.”; and
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(l) after Table-I, under the existing Restriction-1-Reduction,after
the figure “9” the expression “and 10” shall be inserted; and
(II) in Table II, in column (1), against S. No. 3, in column (2), under clause
(a),−
(i) against sub-clause (i), in column (4), for the words “Two
thousand”, the words “fifteen hundred” shall be substituted; and
(ii) against sub-clause (ii), in column (4), for the words “One
thousand two hundred and fifty”, the words “nine hundred” shall
be substituted.
(9) in Second Schedule, in the table, in column (1), after omitted serial number 3
and entries relating thereto, the following new serial number and entries
relating thereto shall be added in columns (1), (2) and (3), namely:−
“4. Steel Billets, ingots, ship plates, bars
and other long re-rolled products
Respective
headings“;
(10) in the Third Schedule, in Table-II, in column (1), against serial number 2, in
column (2),–
(a) the clause (i) shall be omitted; and
(b) in clause (ii), after the word “or”, the word “terrestrial” shall be
substituted; and
(11) after Third Schedule, the following new schedule shall be added, namely:−
“FOURTH SCHEDULE”
(Minimum Production)
[See sub-section (5A) of section 3]
1. Minimum production of steel products.—
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The minimum production for steel products shall be determined as per
criterion specified against each in the Table below:
Table
S. No. Product Production criteria
(1) (2) (3)
1. Steel billets and ingots One metric ton per 700 kwh of
electricity consumed
2. Steel bars and other re-rolled long
profiles of steel
One metric ton per 110 kwh of
electricity consumed
3. Ship plates 75% of the weight of the vessel
imported for breaking
Procedure and conditions:–
(i) Both actual and minimum production, and the local supplies shall be declared
in the monthly return. In case, the minimum production exceeds actual
supplies for the month, the liability to pay duty shall be discharged on the
basis of minimum production:
Provided that in case, in a subsequent month, the actual supplies
exceed the minimum production, the registered person shall be entitled to get
adjustment of excess duty on account of excess of minimum production over
actual supplies:
Provided further that in a full year, as per financial year of the
company or registered person, or period starting from July to June next year,
in other cases, the duty actually paid shall not be less than the liability
determined on the basis of minimum production for that year:
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Provided also that in case of ship-breaking, the liability against
minimum production, or actual supplies, whichever is higher, shall be
deposited on monthly basis on proportionate basis depending upon the time
required to break the vessel.
(ii) The Board, may notify minimum values for steel products as mentioned in the
Table above in exercise of powers under sub-section (5) of section 12.
(iii) The payment of FED on ship plates in aforesaid manner does not absolve
ship breakers of any tax liability in respect of items other than ship plates
obtained by ship-breaking.
(iv) The melters and re-rollers employing self-generated power shall install a
tamperproof meter for measuring their consumption. Such meter shall be duly
locked in room with keys in the custody of a nominee of the Commissioner
Inland Revenue having jurisdiction. The officers Inland Revenue having
jurisdiction shall have full access to such meter.
(v) The minimum production of industrial units employing both distributed power
and self-generated power shall be determined on the basis of total electricity
consumption.
15 Assets Declaration Act, 2019.— There is hereby enacted Assets Declaration Act,
2019, in the manner as follows:—
AN
ACT
to provide for voluntary declaration of undisclosed assets, sales and
expenditure
WHEREAS there is a reportedly large scale non-declaration of assets, sales and
expenditure;
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AND WHEREAS it is expedient to make provisions for declaration of such assets,
sales and expenditure for the purposes hereinafter appearing;
AND WHEREAS it is expedient to—
(a) allow the non-documented economy’s inclusion in the taxation system; and
(b) serve the purpose of economic revival and growth by encouraging a tax
compliant economy;
It is hereby enacted as follows:—
1. Short title, extent and commencement.– (1) This Act shall be called the Assets
Declaration Act, 2019.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions.—(1) In this Act, unless there is anything repugnant in the
subject or context,—
(a) “Board” shall have the same meaning as defined in clause (8) of
section 2 of the Income Tax Ordinance, 2001 (XLIX of 2001);
(b) “court of law” means a High Court or Supreme Court of Pakistan;
(c) "declarant" means a person making a declaration under section 3;
(d) "holder of public office" means a person as defined in the Voluntary
Declaration of Domestic Assets Act, 2018 or his benamidar as defined
in the Benami Transactions (Prohibition) Act, 2017 (V of 2017) or their
spouses and dependents;
(e) “undisclosed assets” means all domestic and foreign assets of every
kind the value of which has been unreported, under-reported or
understated and includes benami assets as defined in the Benami
Transactions (Prohibition) Act, 2017 (V of 2017);
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(f) “undisclosed expenditure” means any unexplained or unaccounted
expenditure under the provisions of the Income Tax Ordinance, 2001
(XLIX of 2001) up to the tax year 2018, which has not been declared in
the return of income or for which a return of income has not been filed
and such expenditure is not accounted for;
(g) “undisclosed sales” means sales or supplies chargeable to sales tax or
goods or services subject to federal excise duty under the Sales Tax
Act, 1990 or the Federal Excise Act, 2005, respectively, which were
not declared or have been under-declared up to the 30th June, 2018.
(2) All other words and expressions used but not defined in this Act shall have
the same meaning assigned thereto under the Income Tax Ordinance, 2001
(XLIX of 2001), the Sales Tax Act, 1990, the Federal Excise Act, 2005, the
Benami Transactions (Prohibition) Act, 2017(V of 2017) and the rules made
thereunder.
3. Declaration of undisclosed assets, sales and expenditure.— (1) Subject
to the provisions of this Act, any person may make, on or before the 30th June,
2019, a declaration only in respect of any—
(a) undisclosed assets, held in Pakistan and abroad, acquired up to the
30th June, 2018;
(b) undisclosed sales made up to the 30th June, 2018;
(c) undisclosed expenditure incurred up to the 30thJune, 2018; or
(d) benami assets acquired or held on or before the date of declaration.
Explanation.— It is clarified that the benefit under this Act shall also
be available where—
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(a) any proceedings have been initiated or are pending or where any
income has been assessed under the Income Tax Ordinance, 2001
(XLIX of 2001), which are relatable to undisclosed assets or
expenditure except where the matter has attained finality; and
(b) any proceedings have been initiated or are pending or have been
adjudicated under the Sales Tax Act, 1990, or the Federal Excise Act,
2005, which are relatable to any undisclosed sales or supplies except
where the matter has attained finality.
4. Charge of tax and default surcharge.— (1) The undisclosed assets
shall be chargeable to tax and default surcharge at the value mentioned in section 5
and at the rates specified in the Schedule to this Act.
(2) The undisclosed sales and expenditure shall be chargeable to tax and
default surcharge at the rates specified in the Schedule to this Act.
5. Value of assets.—Value of assets,—
(a) in case of domestic immovable properties shall be the cost of
acquisition but shall not be less than—
(i) 150% of the FBR value notified under sub-section (4) of
section 68 of the Income Tax Ordinance, 2001 (XLIX of 2001);
or
(ii) 150% of the DC value, where FBR value has not been notified
or the FBR value is less than the DC value; or
(iii) 150% of FBR value notified under sub-section (4) of section 68
of the Income Tax Ordinance, 2001 (XLIX of 2001) for land
and 150% of DC value for constructed property, where FBR
value has not been notified for constructed property.
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(b) in case of all other assets, shall be the price which the assets would
ordinarily fetch on sale in the open market on the date of declaration
but in no case shall be less than the cost of acquisition of the asset:
Provided that in case of foreign assets, the fair market value
shall be determined at the exchange rate prevalent on the date of
declaration.
Explanation.— It is clarified as follows—
(a) in case any declarant has already filed a declaration in
respect of any immovable property under the Income
Tax Ordinance, 2001 (XLIX of 2001), or the Voluntary
Declaration of Domestic Assets Act, 2018 and wishes to
enhance the declared value of the said immovable
property, he may file a declaration under this Act in
terms of the value mentioned in section 5 and above;
and
(b) in case a person has already filed a declaration in
respect of any immovable property which is in line with
section 68 of the Income Tax Ordinance, 2001 (XLIX of
2001), or the Voluntary Declaration of Domestic Assets
Act, 2018 no further proceedings or action shall be
initiated against him in view of the provisions of this Act,
in particular section 5 thereof.
6. Time for payment of tax.— (1) The due date for payment of tax chargeable
under this Act shall be on or before the 30th June, 2019:
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Provided that after the due date under this sub-section, the tax shall be paid
on or before the 30th June, 2020 along with default surcharge at the rates given in
clause (2) of the Schedule to this Act.
(2) The tax in respect of foreign assets or foreign currency held in
Pakistan shall be paid in foreign currency according to the procedure prescribed by
the State Bank of Pakistan, in the mode and manner provided in section 9.
(3) If a person fails to pay tax and default surcharge according to this
section, the declaration made shall be void and shall be deemed to have never
been made under this Act.
(4) Notwithstanding the provisions of clause (g) of section 11, in case of
outstanding demand at the time of filing of declaration, the declarant may pay the
amount of such tax determined by the Officer of Inland Revenue, under the
provisions of the Sales Tax Act, 1990 or the Income Tax Ordinance, 2001 (XLIX of
2001), or the Federal Excise Act, 2005, without payment of default surcharge and
penalty.
(5) Where a person declares undisclosed sales and in case of
undisclosed assets or undisclosed expenditures resulting from such sales, he is
also required to declare such assets or such expenditures or both and pay tax at the
rates specified in the Schedule to this Act on such assets or expenditures or both in
addition to tax on such sales.
(6) Where the declarant has paid tax under this section, no tax shall be
payable by the declarant under the Income Tax Ordinance, 2001 (XLIX of 2001), in
respect of undisclosed assets and undisclosed expenditures.
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(7) Where the declarant has paid tax under this section, no tax shall be
payable by the declarant under the Sales Tax Act, 1990 or the Federal Excise Act,
2005 in respect of undisclosed sales.
7. Incorporation in books of account.—(1) Where a declarant has paid tax
under section 6 in respect of undisclosed assets, sales and expenditure the
declarant shall be entitled to incorporate such assets, sales or expenditure in his
return, wealth statement or financial statement irrespective of the fact that the asset,
sales or expenditure were relatable to a year which is barred by time for the purpose
of revision of return of income or wealth statement, as the case may be.
(2) No allowance, credit or deduction under any law for the time being in
force shall be available for assets so incorporated.
8. Conditions for declaration.— The declaration made shall be valid, if—
(a) cash held by the declarant is deposited into a bank account in the
manner specified at the time of declaration and is retained in such
bank account up to the 30th June, 2019; or
(b) the foreign currency held in Pakistan declared under section 3 is
deposited into declarant’s own foreign currency bank account at the
time of declaration and is retained in such account till the 30th June,
2019; or
(c) the repatriated foreign liquid asset is deposited into declarant’s own
Pak Rupee account or his foreign currency bank account in Pakistan
or is invested into Pakistan Banao Certificates or any foreign currency
denominated bonds issued by the Federal Government; or
(d) foreign liquid assets not repatriated to Pakistan shall be deposited in
declarant’s foreign bank account on or before the 30th June, 2019.
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9. Mode and manner of repatriation of assets held outside Pakistan and
payment of tax thereon.—The State Bank of Pakistan shall notify the mode and
manner of—
(a) repatriation of assets to Pakistan;
(b) deposit of tax in foreign currency through State Bank of Pakistan; and
(c) method of conversion of value of assets held outside Pakistan in Pak
Rupees.
10. Tax paid not refundable.— Any amount of tax or default surcharge paid
under the provisions of this Act shall not be refundable.
11. Act not to apply to certain persons, assets or proceedings.— The
provisions of this Act shall not apply to—
(a) holders of public office;
(b) a public company as defined under clause (47) of section 2 of the
Income Tax Ordinance, 2001 (XLIX of 2001);
(c) any proceeds or assets that are involved in or derived from the
commission of a criminal offence;
(d) gold, precious metals, precious stones or jewelry;
(e) bearer prize bonds;
(f) bearer securities, bearer shares, bearer certificates, bearer bonds or
any other bearer assets; or
(g) proceedings pending in any court of law.
12. Declaration not admissible in evidence.— Notwithstanding anything
contained in any other law for the time being in force, nothing contained in any
declaration made under this Act shall be admissible in evidence against the
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declarant for the purpose of any proceedings relating to imposition of penalty or
adverse action or for the purposes of prosecution under any law.
13. Misrepresentation.— Notwithstanding anything contained in this Act, where
a declaration has been made by misrepresentation or suppression of facts, such
declaration shall be void and shall be deemed to have been never made under this
Act.
14. Confidentiality.— (1) Notwithstanding any other law for the time being in
force including the Right of Access to Information Act, 2017 (XXXIV) and sub-
section (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001),
except the provisions of clauses (a) and (g) of sub-section (3) of section 216 of the
Income Tax Ordinance, 2001(XLIX of 2001), particulars of any person making a
declaration under this Act or any information received in any declaration made
under this Act shall be confidential.
15. Power to make rules.— The Board may, by notification in the official
Gazette, make rules for carrying out the purposes of this Act including the manner,
procedure, payment of tax and conditions under which the declaration under this Act
shall be filed.
16. Act to override other laws.— The provisions of this Act shall have effect
notwithstanding anything to the contrary contained in any other law for the time
being in force.
17. Removal of difficulties.— (1) If any difficulty arises in giving effect to
the provisions of this Act, the Federal Government may, by notification in the official
Gazette, remove such difficulty as is not inconsistent with the provisions of this Act.
18. Revision of declaration.— Any person who, having filed a declaration,
hereinafter referred to as the “original declaration”, discovers any omission, mistake,
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computational error or wrong statement therein, may file revised declaration within
the due date specified in section 3, subject to the condition that the value of asset or
tax thereon shall be not less than the value of asset and tax thereon, declared in the
original declaration.
19. Repeal.— The Assets Declaration Ordinance, 2019 (III of 2019) is hereby
repealed from the date of commencement of this Act.
THE SCHEDULE
[see section 4]
Rates of Tax
(1) The rates of tax imposed on undisclosed assets, sales and
expenditures shall be as specified in the following Table, namely: —
TABLE
S. No. Undisclosed assets, sales or expenditure Rate of tax
(1) (2) (3)
1. Domestic immovable properties 1.5%
2. Foreign liquid assets not repatriated 6%
3. Unexplained expenditure 4%
4. Undisclosed Sales 2%
5. All other assets 4%
Rates of Default Surcharge
(2) The amount of tax under clause (1) of the Schedule shall be increased
by a default surcharge, by amount as specified in column (3) of the following
Table, namely:—
TABLE
188
S. No. Time of payment of tax Rate of default
surcharge
(1) (2) (3)
1. If the tax is paid after the 30th June, 2019 and
on or before the 30th September, 2019
10% of the tax
amount
2. If the tax is paid after the 30th September,
2019 and on or before the 31st December,
2019
20% of the tax
amount
3. If the tax is paid after the 31st December, 2019
and on or before the 31st March, 2020
30% of the tax
amount
4. If the tax is paid after the 31st March, 2020
and on or before the 30th June, 2020
40% of the tax
amount
16 Amendments in the Finance Supplementary (Second Amendment) Act, 2019 (III
of 2019).- In the Finance Supplementary (Second Amendment) Act, 2019 (III of 2019), in
section 6, for the TABLE, the following shall be substituted, namely:-
“TABLE
S.No. Mobile Phones having C&F
Value (US Dollars)
Rate of levy per set in
Pak Rupees
(1) (2) (3)
1 Up to 30 Nil
2 Above 30 and up to 100 Nil
3 Above 100 and up to 200 400
4 Above 200 and up to 350 1200
191
NOTES ON CLAUSES
FINANCE BILL, 2019 CUSTOMS ACT, 1969 (IV OF 1969)
Clause 6(1) Seeks to amend section 2 to define the terms “customs controls”, “risk
management system” and “selectivity criteria” used in the proposed
new Section 80AA as well as in other provisions of the Act.
Clause 6(2) Seeks to amend section 3E of the Act to give reference to the
Directorates General besides the Directorates.
Clause 6(3) Seeks to amend section 18D to empower Board with approval of
Federal Minister-in-charge to levy fee and service charges instead of
the Federal Government.
Clause 6(4) Seeks to amend section 19 to restrict the power of the Federal
Government to grant exemption of customs duty for development of
backward areas or removal of anomalies in duties.
Clause 6(5) Seeks to amend section 25A to withdraw powers of the Collector of
Customs to determine value of the imported or exported goods on his
own motion or on a reference made to him by any person.
Clause 6(6) Seeks to amend section 30 to empower Board with approval of Federal
Minister-in-charge instead of the Federal Government, to specify for
any class of imported goods, any other date for determination of duty
192
than those given in the section.
Clause 6(7) Seeks to amend section 30A to empower Board with approval of
Federal Minister-in-charge instead of the Federal Government, to
specify for any class of imported goods, any other date for
determination of duty than those given in the section.
Clause 6(8) Seeks to amend section 31 to empower Board with approval of Federal
Minister-in-charge instead of the Federal Government, to specify for
any class of exported goods, any other date for determination of duty
than those given in the section.
Clause 6(9) Seeks to amend section 32(3A) to give legal cover to proceedings to
recover amount pointed out as a result of audit of exporter’s record.
Clause 6(10) Seeks to amend section 32B to empower Directors besides Collectors
to compound the offence on payment of duty or tax due alongwith
payment of penalty.
Clause 6(11) Seeks to insert new section 32C to include offences related to possible
scenarios of trade mis-invoicing leading to illegal transfer of funds
across border, not expressly covered under the provisions of section
32 of the Act.
Clause 6(12) Seeks to amend section 33 to empower the Board to allow sanction of
refund subject to pre-audit and to define the pecuniary limit of the
various refund sanctioning authorities, through issuance of notification.
193
Clause 6(13) Seeks to amend section 79, to reduce the time for filing of Goods
Declaration from the date of arrival, to ten days.
Clause 6(14) Seeks to insert new section 80AA to give proper reference to the
establishment of Risk Management System.
Clause 6(15) Seeks to amend section 81 to extend its scope to assessment of
exported goods.
Clause 6(16) Seeks to amend section 82 to reduce the time period for placing of un-
cleared goods in auction, to fifteen days and further extendable period
to five days.
Clause 6(17) Seeks to amend section 90 to extend its operationalization under
customs computerized system and to include provision for making
rules.
Clause 6(18) Seeks to amend section 98 to reduce the warehousing period of
perishable goods, to empower Chief Collector to grant extension of
warehoused goods as deemed appropriate by him and to withdraw
such powers of the Board and Federal Government. Also seeks to
empower the Board to regulate the period for which the goods may
remain in the warehouse.
Clause 6(19) Seeks to amend section 155A to empower the Board instead of
Federal Government to determine the date for application of all or
specific provisions of the Customs Act, 1969, related to the Customs
194
computerized system on any Customs station.
Clause 6(20) Seeks to amend section 156 to segregate the penalty imposed for
violation of section 32 in proportion to the severity of the offences
mentioned under the respective sub-sections, to provide penalty for an
offence under section 32C and to enhance the penalty under clause
47A of section 156.
Clause 6(21) Seeks to insert a new section to penalize officers and taxpayers who
commit an act of commission or omission resulting in personal benefit
or undue advantage.
Clause 6(22) Seeks to amend section 179 to withdraw the powers of the Assistant
Collector to adjudicate cases, to enhance the pecuniary limit of cases
adjudicated by Superintendent and Principal Appraiser and to reduce
the time period for passing an order to ninety days.
Clause 6(23) Seeks to amend section 181 to expand its scope for any other violation
of the Act.
Clause 6(24) Seeks to amend section 185 to empower Prime Minister instead of the
Federal Government, to appoint Special Judge Customs in
consultation with the Chief Justice of the concerned High Court.
Clause 6(25) Seeks to amend section 185D to empower Prime Minister instead of
the Federal Government, to transfer cases from the jurisdiction of one
Special Judge Customs to another, in consultation with the Chief
195
Justice of the concerned High Court.
Clause 6(26) Seeks to amend section 193 to give an option for appeal against an
order passed under section 131 of the Act.
Clause 6(27) Seeks to amend section 193A to reduce the statutory time period for
deciding an appeal by Collector (Appeals) from one hundred and
twenty days to ninety days.
Clause 6(28) Seeks to amend section 194 to empower the Prime Minister to appoint
judicial members, technical members, chairman and to determine
terms and conditions of their appointment. Also seeks to include
Director or Chief of the Board with minimum three years experience for
appointment as technical member in Appellate Tribunal, to make
selection of advocate of High Court as judicial member subject to
FPSC Ordinance, 1977 and Civil Servants Act, 1973 and to fix the
tenure of the technical member to two years.
Clause 6(29) Seeks to amend section 195 to withdraw the powers of the Collector
(Adjudication) to reopen cases and to empower Chief Collectors to
reopen cases. Also seeks to specify the time limit for passing of order
after re-opening of case under section 195.
Clause 6(30) Seeks to amend section 195C to align the provisions related to
Alternate Dispute Resolution with similar provisions in other taxing
statutes.
196
Clause 6(31) Seeks to amend section 200 to expand the scope to exported goods.
Clause 6(32) Seeks to amend section 202 to align the provisions with nomenclature
of prevalent acts and tax authorities.
Clause 6(33) Seeks to amend section 203 to include provision for making rules.
Clause 6(34) Seeks to amend section 212A to omit approval of the Federal
Government to make rules for authorised economic operators program.
Clause 6(35) Seeks to amend First Schedule to the Customs Act, 1969 with the First
Schedule to this Act.
Clause 6(36) Seeks to substitute Fifth Schedule to the Customs Act, 1969 with the
Second Schedule to this Act.
197
SALES TAX ACT, 1990
Clause 11(1)(a)
Seeks to substitute clause 6(5AB) of section 2
Clause 11(1)(b)(i)
Seeks to omit the expression “(Private)” in clause 6(11A)
of section 2
Clause 11(1)(b)(ii) Seeks to substitute the expression “Companies Act, 2017
(XIX of 2017)” with the expression “Companies
Ordinance, 1984 (XLVII of 1984)’ in clause 6(11A) of
section 2
Clause 11(1)(c) Seeks to insert the expression “or importer, in case of
imported goods” after the word “manufacturer” in clause
6(27) of section 2
Clause 11(1)(d) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in clause 6(33) of section 2
Clause 11(1)(e) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in clause 6(43) of section 2
Clause 11(1)(f)(i) Seeks to omit the word “and” at the end in sub-clause 6(c)
198
of clause 6(43A) of section 2
Clause 11(1)(f)(ii) Seeks to insert the word “and” after the semi-colon at the
end, and to add new clause 6(e) after the sub-clause 6(d)
in clause 6(43A) of section 2
Clause 11(1)(g)(i) Seeks to insert the expression “excluding those as
specified in the Third Schedule” after the word “goods” in
sub-clause 6(d) of clause 6(46) of section 2
Clause 11(1)(g)(ii) Seeks to omit the word “and” at the end of sub-clause 6(e)
of clause 6(46) of section 2
Clause 11(1)(g)(iii) Seeks to substitute clause 6(f) of clause 6(46) of section 2
Clause 11(1)(g)(iv) Seeks to add new clauses (h) and (i) after the clause 6(g)
of clause 6(46) of section 2
Clause 11(2)(a) Seeks to substitute sub-section (1B) of section 3
Clause 11(2)(b)(i) Seeks to insert the words “and imports of goods” after the
word “supplies” occurring for the first time, in clause 6(a)
of sub-section (2) of section 3
Clause 11(2)(b)(ii) Seeks to insert the words “or imports” after the word
“supplies”, occurring for the second time, in clause 6(a) of
sub-section (2) of section 3
Clause 11(2)(b)(iii) Seeks to insert the expression “, or the importer, in case
of imported goods,” after the word “manufacturer” in
199
clause 6(a) of sub-section (2) of section 3.
Clause 11(2)(b)(iv) Seeks to insert the words “or import” after the word
“supply” occurring twice, in the proviso in clause 6(a) of
sub-section (2) of section 3
Clause 11(2)(c) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in sub-section (3A) of section 3
Clause 11(2)(d) Seeks to substitute sub-section (7) of section 3
Clause 11(2)(e)(i) Seeks to insert the expression “, other than those falling in
Tier-1,” after the word “retailers” in sub-section (9) of
section 3
Clause 11(2)(e)(ii) Seeks to substitute the expression “and the electricity
supplier shall deposit the amount so collected directly
without adjusting against his input tax” with the expression
“subject to the exclusions, procedure, restrictions and
limitations as prescribed in Chapter II of the Sales Tax
Special Procedure Rules, 2007” in sub-section (9) of
section 3
Clause 11(2)(e)(iii) Seeks to substitute a colon with full stop at the end of
proviso and to add a new proviso in sub-section (9) of
section 3
200
Clause 11(2)(f) Seeks to substitute sub-section (9A) of section 3
Clause 11(3)(a) Seeks to substitute clause 6(c) of section 4
Clause 11(3)(b) Seeks to omit clause 6(d) of section 4
Clause 11(4)(a) Seeks to substitute the expression “, or in case of supply
of electricity or gas, a bill bearing his registration number
and the address where the connection is installed” with
the words “for which a return is furnished” in clause 6(i) of
sub-section (2) of section 7
Clause 11(4)(b) Seeks to substitute the words “Board, with the approval of
the Minister-in-charge,” with the words “Federal
Government” in sub-section (3) of section 7
Clause 11(5) Seeks to substitute sub-section (2) of section 7A
Clause 11(6)(a) Seeks to substitute clause 6(m) of sub-section (1) of
section 8
Clause 11(6)(b) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in sub-section (6) of section 8
Clause 11(7) Seeks to substitute the expression “and may also in the
like manner relax the aforesaid limit to ninety-five per
cent” with the expression “sub-section (1)” in the second
proviso of section 8B
201
Clause 11(8) Seeks to substitute the words “at the fixed rates and in the
in the manner as” with the words “alongwith duty
drawback at the rates” in the second proviso of sub-
section (1) of section 10
Clause 11(9) Seeks to substitute clause 6(a) of sub-section (2) of
section 13
Clause 11(10)(a) Seeks to insert the expression “, in Urdu or English
language,” after the word “particulars” in sub-section (1) of
section 23
Clause 11(10)(b) Seeks to insert the expression “, or in case of supplies to
unregistered person, NIC number,” after the word
“number” in clause 6(b) of sub-section (1) of section 23
Clause 11(10)(c) Seeks to insert the expression “, including count, denier
and construction in case of textile yarn and fabric,” after
the word “description” in clause 6(d) of sub-section (1) of
section 23
Clause 11(11) Seeks to substitute the full stop with the colon in the
second proviso and to omit third proviso of sub-section (2)
of section 25
Clause 11(12) Seeks to substitute a colon for the full stop at the end and
to add a new proviso in sub-section (3) of section 26
202
Clause 11(13) Seeks to substitute the word “appoint” with the word “post”
in sub-section (1) of section 30A
Clause 11(14)(a) Seeks to substitute the word “ten” with the word “five” in
column (2), against serial number 1 in column (1), in the
Table of section 33
Clause 11(14)(b) Seeks to substitute the word “two” with the word “one” in
the proviso in section 33
Clause 11(15) Seeks to insert new section 33A after section 33
Clause 11(16)(a) Seeks to substitute the words “an officer of Inland
Revenue” with the words “a Sales Tax Officer”, wherever
occurring in section 37B
Clause 11(16)(b) Seeks to substitute the words “an officer of Inland
Revenue” with the words “a Sales Tax Officer”, wherever
occurring in section 37B
Clause 11(16)(c) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in sub-section (13) of section 37B
Clause 11(17) Seeks to substitute section 58
Clause 11(18)(a) Seeks to omit the expression “(Private)”, wherever
occurring in section 67A
203
Clause 11(18)(b) Seeks to substitute the expression “Board, with the
approval of the Minister-in-charge,” with the words
“Federal Government” in sub-section (12) of section 67A
Clause 11(19) Seeks to substitute the expression “subject to the
provisions of this Act, the Board” with the words
“Notwithstanding anything contained in this Act, the
Federal Government” in sub-section (1) of section 71
Clause 11(20) Seeks to insert a new sub-section after sub-section (1) of
section 72B
Clause 11(21) Seeks to add new serial numbers and entries relating
thereto in columns (2) and (3) after serial number 37 in
column (1) in the Third Schedule
Clause 11(22)(a)(i) Seeks to add the expression “, or packed” after the word
“preserved” in column (2), against serial number (2) and
(3) in column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(a)(ii)(A) Seeks to insert the expression “, excluding the products of
milling industry, other than wheat and meslin flour, as sold
in retail packing bearing brand name or a trademark” after
the word “industry” in column (2), against serial number
19 in column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(a)(ii)(B) Seeks to omit the figure “1102.1000” in column (3) against
serial number 19 in column (1) of Table-1 in the Sixth
204
Schedule
Clause 11(22)(a)(iii) Seeks to omit serial numbers 36 and 37 in column (1) and
entries relating thereto in columns (2) and (3) of Table-1 in
the Sixth Schedule
Clause 11(22)(a)(iv) Seeks to insert the expression “, excluding electricity and
natural gas,” after the word “Goods” in column (2), against
serial number 52A in column (1) of Table-1 in the Sixth
Schedule
Clause 11(22)(a)(v) Seeks to add the expression “whether or not fresh, frozen
or otherwise, preserved, or packed” after the word “Meat”
in column (2), against serial number 72 in column (1) of
Table-1 in the Sixth Schedule
Clause 11(22)(a)(vi) Seeks to omit the expression “04.01 and” in column (2),
against serial number 73A in column (1) of Table-1 in the
Sixth Schedule
Clause 11(22)(a)(vii) Seeks to add the expression “, excluding those sold in
retail packing under a brand name or a trademark” after
the word “offal” in column (2), against serial number 82 in
column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(a)(viii) Seeks to add the expression “, excluding those sold in
retail packing under a brand name or a trademark” after
the word “fish” in column (2), against serial number 83 in
205
column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(a)(ix) Seeks to add the expression “, excluding those sold in
retail packing under a brand name or a trademark” after
the word “milk” in column (2), against serial number 85 in
column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(a)(x) Seeks to add new serial numbers and entries relating
thereto in columns (1), (2) and (3) after serial number 150
in column (1) of Table-1 in the Sixth Schedule
Clause 11(22)(b)(i) Seeks to omit the words “and ginned cotton” in column
(2), against serial number 16 in column (1) in Table-2 in
the Sixth Schedule
Clause 11(22)(b)(ii) Seeks to add a new serial number and entries relating
thereto in columns (1), (2) and (3) after serial number 24
in column (1) in Table-2 in the Sixth Schedule
Clause 11(23)(a)(i) Seeks to substitute serial 14 and entries relating thereto in
columns (1), (2), (3), (4) and (5) in column (1) in Table-1
in the Eighth Schedule
Clause 11(23)(a)(ii) Seeks to omit serial numbers 18, 21 and 22 and entries
relating thereto in columns (2), (3), (4) and (5) in column
(1) in Table-1 in the Eighth Schedule
Clause 11(23)(a)(iii) Seeks to substitute the figure “8432.3900” with the figure
206
“8432.3090”, occurring three times in column (3), against
serial number 27 in column (1) in Table-1 in the Eighth
Schedule
Clause 11(23)(a)(iv) Seeks to omit serial number 32 and entries relating
thereto in columns (2), (3), (4) and (5) in column (1) in
Table-1 in the Eighth Schedule
Clause 11(23)(a)(v) Seeks to substitute the figure “70” with the figure “65” in
columns (4) and (5) against serial number 56 in column
(1) in Table-1 in the Eighth Schedule
Clause 11(23)(a)(vi) Seeks to add new serial numbers and entries relating
thereto in columns (2), (3), (4) and (5) after serial number
58 in column (1) in Table-1 in the Eighth Schedule
Clause 11(24) Seeks to substitute serial number 2 and entries relating
thereto in columns (2), (3), (4) and (5) in column (1) in the
Table in the Ninth Schedule
Clause 11(25) Seeks to add new Schedules after Ninth Schedule
207
ISLAMABAD CAPITAL TERRITORY (TAX ON SERVICES)
ORDINANCE, 2001
Clause 12(1)(a) Seeks to substitute the word “seventeen” with the words
“eighteen and a half” against S. No. 41 in column (1) in the
Schedule
Clause 12(1)(b) Seeks to add new S. No. and corresponding entries relating
thereto in columns (2), (3) and (4) after S. No. 42 in column
(1) in the Schedule
208
AMENDMENT OF INCOME TAX ORDINANCE, XLIX OF 2001
Clause 13(1)(A) Seeks to define the term “active taxpayers’ list”.
Clause 13(1)(B) Seeks to define the term “Asset Move”.
Clause 13(1)(C) Seeks to define the term “FBR Refund Settlement
Company Limited”
Clause 13(1)(D) Seeks to omit the definition of “filer”
Clause 13(1)(E) Seeks omit the definition of “non-filer”
Clause 13(1)(F) Seeks to define the terms, “offshore assets”, “offshore
enabler” and “offshore evader”.
Clause 13(1)(G) Seeks to define the term “specified jurisdiction”
Clause 13(1)(H) Seeks to define the term “unspecified jurisdiction”
Clause 13(2) Seeks to exclude brought forward depreciation and
brought forward business losses from income for the
purpose computation of super tax
Clause 13(3) Seeks to provide higher tax rates from income from
profit on debt and to tax such income where it exceeds
Rs 36 million at normal rates.
Clause 13(4) Seeks to disallow commission paid in respect of
products listed in Third Schedule Sales Tax Act 1990 to
persons who are registered under the said Act and also
209
not appearing in the active taxpayers’ list
Clause 13(5)(A) Seeks to amortize expenditure of intangibles over
actual useful life and where actual useful life is not
ascertainable, over a period of 25 years
Clause 13(5)(B) Seeks to exclude self-generated goodwill from the
definition of intangibles
Clause 13(6)(A) Seeks to omit separate tax rates for income from
capital gains
Clause 13(6)(B) Seeks to charge income under the head capital gains
for immoveable property at normal tax rates by
providing separate holding periods for open plots and
constructed properties
Clause 13(7) Seeks to include gift received by a persons as “income
from other sources”
Clause 13(8) Seeks to restrict the power of Federal Government to
grant exemptions
Clause 13(9) Seeks to omit the expression “being a filer” from section
62A
Clause 13(10) Seeks to provide tax credit to persons employing fresh
graduates
210
Clause 13(11)(A) Seeks to reduce the rate of tax credit from 10 % to 5%
of the amount invested for BMR for tax year 2019
Clause 13(11)(B) Seeks to restrict tax credits for BMR upto tax 2019.
Clause 13(12) Seeks to provide purchase of assets through banking
channels and disallow depreciation and amortization
expenditure in case of violation
Clause 13(13) Seeks to amend the definition of the “resident
individual”
Clause 13(14) Seeks to empower the Federal Government to
prescribe special procedures for small businesses,
construction businesses, medical practitioners,
hospitals, educational institutions and any other sector
specified by the Federal Government
Clause 13(15) Seeks to provide and enabling provision for a separate
Schedule for taxation of persons not appearing in the
active taxpayers’ list
Clause 13(16)(A) Seeks to provide for requirement of approval of the
Commissioner for claiming 100% tax credits by trusts
welfare institutions and NPOs
Clause 13(16)(B) Seeks to technical amendment to empower the
Commissioner to grant approval instead of the Chief
211
Commissioner
Clause 13(17) Seeks to provide for disclosure of information about
pertaining to tax treaties
Clause 13(18) Seeks to authorize the Commissioner to seek report
from a Chartered Accountant or Cost Accountant to
determine fair market value of any asset, product,
expenditure or service and also seeks to curtail
manufacturers from shifting profits to commission
agents/dealers
Clause 13(19)(a) Seeks to reduce the threshold of foreign remittance
used as a source of investment from being probed,
from Rs 10 million to Rs 5 million in a tax year.
Clause 13(19)(b) Seeks to withdraw the immunity from probe where
registered value of property is less than FBR value of
the property
Clause 13(20) Seeks to enhance the requirement for owners of
immoveable property to file return from 250 square
yards to 500 square yards
Clause 13(21) Seeks to change the due date for filing of return for
salaried individual
Clause 13(22) Seeks to bar income tax proceedings in respect of any
212
declaration in the Amnesty scheme
Clause 13(23) Seeks to include cost & management accountants in
Alternate Dispute Resolution Committee
Clause 13(24) Seeks to provide for recovery of association of persons’
tax from its member
Clause 13(25) Seeks to authorize the Commissioner to freeze asset of
a person who is likely to leave Pakistan and is involved
in offshore tax evasion
Clause 13(26) Seeks to change the term “filer” to the expression “
person whose name was appearing in active taxpayers’
list”
Clause 13(27) Seeks to change final tax regime to minimum tax
regime for certain persons
Clause 13(28) Seeks to change final tax regime to minimum tax
regime on income from profit on debt
Clause 13(29)(A) Seeks to withdraw the option for a non resident to opt
for final tax regime in respect of income from contracts
Clause 13(29((B) Seeks to change the tax deductible from final tax
liability to minimum tax liability
Clause 13(29)(C) Seeks to authorize Commissioner to allow payment in
case of a cohesive arrangement at a tax deduction
213
equal to thirty percent of the tax chargeable
Clause 13(30) Seeks to make tax deductible minimum tax liability in
case of payments for sale of goods, services and
contracts and also to omit the reduced rate available in
clause 6(94) to specific services
Clause 13(31) Seeks to introduce withholding tax on royalty payment
to residents
Clause 13(32) Seeks to provide for the amendment of an order of
recovery from withholding agent under section 161 in
case such order is prejudicial to interest of revenue
Clause 13(33) Seeks to give effect to the amendment made in the
Tenth Schedule
Clause 13(34) Seeks to omit the terms “filers” and “ non filers” from
section 165A
Clause 13(35) Seeks to omit for the provisions on final tax with regard
to inadmissibility of tax credit of final tax liability
Clause 13(36) Seeks to provide for adjustability of tax collection or
deduction to the extent of higher rate
Clause 13(37) Seeks to provide for payment of refund through income
tax refund bonds
214
Clause 13(38) Seeks to provide for powers of raid
Clause 13(39) Seeks to separate audit and assessment functions
Clause 13(40) Seeks to provide for a business license scheme
Clause 13(41)(A) Seeks to enhance the penalty for not filing of return
under section 114 within due date
Clause 13(41)(B) Seeks to enhance penalty for failure to furnish wealth
statement and wealth reconciliation
Clause 13(41)(C) Seeks to enhance penalty for failure to apply for
registration
Clause 13(41)(D) Seeks to enhance penalty for erroneous calculation in
the return for more than one year and whereby tax is
less than tax payable
Clause 13(41)(E) Seeks to enhance the penalty for obstructing the
Commissioner from accessing premises, places,
accounts, documents computers or stocks
Clause 13(41)(F) Seeks to enhance penalty for concealing income or
furnishing inaccurate particulars of such income
Clause 13(41)(G) Seeks to enhance penalty for failure to collect or deduct
or pay the collected or deducted tax
Clause 13(41)(H) Seeks to introduce new penalties with respect to
215
offshore tax evasion and failure furnish information
required under Common Reporting Standards and
Chapter XIIA of Income Tax Rules
Clause 13(42)(A) Seeks to allow name of late filers to appear on active
taxpayer list subject to payment of surcharge
Clause 13(42)(B) Seeks to provide for non issuance of refund for the
duration in which the person does not appear on active
taxpayers’ list
Clause 13(43) Seeks to make non furnishing of withholding statement
a prosecutable offence
Clause 13(44) Seeks to make concealment of offshore asset as a
prosecutable offence
Clause 13(45) Seeks to make non compliance of notice under section
116A and offshore evasion as prosecutable offences.
Clause 13(46) Seeks to omit term “filer”
Clause 13(47) Seeks to allow for disclosure of names of offshore
evaders offshore enablers
Clause 13(48) Seeks to allow for invitation of criminal proceedings
against officers and taxpayers who indulge in financial
malpractices
216
Clause 13(49) Seeks to withdraw restriction on purchase of certain
assets
Clause 13(50) Seeks to provide for the Board to design Automated
Impersonal Tax Regime to minimize personal
interaction between taxpayers and officers
Clause 13(51) Seeks to make technical amendment
Clause 13(52) Seeks to make technical amendment as corresponding
amendments have been made with respect to
immoveable properties
Clause 13(53) Seeks to provide for establishment of Directorates
General of Special Initiative and Valuation
Clause 13(54) Seeks to substitute the term “non filer” with the
expression “ persons whose name is not appearing in
the active taxpayer’s list in section 231B
Clause 13(55) Seeks to change tax on brokerage and commission
from final tax liability to minimum tax liability
Clause 13(56) Seeks to change tax on CNG stations from final tax
liability to minimum tax liability
Clause 13(57) Seeks to enhance the holding period for the seller from
three to five years in respect of withholding tax of sale
of property
217
Clause 13(58) Seeks to substitute the term “non filer” with the
expression “person whose name is not appearing in the
active taxpayer’s list in section 236P
Clause 13(59) Seeks to substitute the term “non filer” with the
expression “person whose name is not appearing in the
active taxpayer’s list in section 236U
Clause 13(60) Seeks to withdraw tax on purchaser of property on
difference of FBR value of property and DC value
Clause 13(61)(A)(a) Seeks to enhance the threshold of taxable income and
tax rates for salaried and non salaried persons
Clause 13(61)(A)(b) Seeks to freeze corporate tax rate at 29% for tax year
2019 and onwards
Clause 13(61)(A)(c) Seeks to enhance tax rates on income from dividend
Clause 13(61)(A)(d) Seeks to enhance tax rates on income from profit on
debt
Clause 13(61)(A)(e) Seeks to provide for higher slabs and tax rates for
income from property
Clause 13(61)(A)(f) Seeks to provide tax rates for securities for tax year
2020
Clause 13(61)(A)(g) Seeks to make technical amendment
218
Clause 13(61)(A)(h) Seeks to change taxation of capital gains from separate
taxation to normal tax regime
Clause 13(61)(A)(i) Seeks to increase tax rates for minimum tax on
turnover
Clause 13(61)(B)(a) Seeks to omit tax rates for non filers on import as these
are separately provided in the Tenth Schedule
Clause 13(61)(B)(b) Seeks to make a technical correction
Clause 13(61)(C)(a) Seeks to increase withholding rates on dividend
Clause 13(61)(C)(b)(i) Seeks to increase withholding tax rates on profit on
debt from 10% to 15%
Clause 13(61)(C)(b)(ii) Seeks to omit withholding tax rates for non filers on
profit on debt as these are separately provided in the
Tenth Schedule
Clause 13(61)(C)(b)(iii) Seeks to omit withholding tax rates for non filers on
profit on debt less than Rs 5 lac as these are separately
provided in the Tenth Schedule
Clause 13(61)(C)(c) Seeks to omit withholding tax rates for non filers on
investment in Sukkuk these are separately provided in
the Tenth Schedule
Clause 13(61)(C)(d) Seeks to omit withholding tax rates for non filers on
certain non residents as these are separately provided
219
in the Tenth Schedule
Clause 13(61)(C)(e) Seeks to omit withholding tax rates for non filers on
sale of goods, services and contracts as these are now
separately provided in the Tenth Schedule and also to
increase tax rates for certain services previously
enumerated in clause 6(94) of Part IV of Second
Schedule
Clause 13(61)(C)(f) Seeks to provide withholding rates for royalty paid to
resident persons
Clause 13(61)(C)(g) Seeks to provide increased tax rates and
corresponding brackets for withholding tax on rental
income
Clause 13(61)(C)(h) Seeks to omit withholding tax rates for non filers on
prizes and winnings as these are now separately
provided in the Tenth Schedule
Clause 13(61)(C)(i) Seeks to omit withholding tax rates for non filers on
petroleum products as these are now separately
provided in the Tenth Schedule
Clause 13(61)(C)(j) Seeks to omit withholding tax rates for non filers on
CNG stations as these are now separately provided in
the Tenth Schedule
220
Clause 13(61)(D)(a) Seeks to omit withholding tax rates for non filers on
brokerage & commission as these are now separately
provided in the Tenth Schedule
Clause 13(61)(D)(b) Seeks to omit withholding tax rates for non filers on
private and passenger transport vehicles as these are
now separately provided in the Tenth Schedule
Clause 13(61)(D)(c) Seeks to substitute the term “non filer” with the
expression “person not appearing in active taxpayers’
list” in case of cash withdrawal from banks
Clause 13(61)(D)(d) Seeks to substitute the term “non filer” with the
expression “person not appearing in active taxpayers’
list” in case of transaction in bank
Clause 13(61)(D)(e) Seeks to omit withholding tax rates for non filers on
registration and purchase of vehicles as these are now
separately provided in the Tenth Schedule
Clause 13(61)(D)(f) Seeks to omit withholding tax rates for non filers on
auction as these are now separately provided in the
Tenth Schedule
Clause 13(61)(D)(g) Seeks to omit withholding tax rates for non filers on
sale of property as these are now separately provided
in the Tenth Schedule
221
Clause 13(61)(D)(h) Seeks to omit withholding tax rates for non filers on
sale to distributers and distributers as these are now
separately provided in the Tenth Schedule
Clause 13(61)(D)(i) Seeks to omit withholding tax rates for non filers on
advance tax on sale to retailers as these are now
separately provided in the Tenth Schedule
Clause 13(61)(D)(j) Seeks to omit withholding tax rates for non filers on
advance tax on sale of petroleum products as these are
now separately provided in the Tenth Schedule
Clause 13(61)(D)(k) Seeks to enhance withholding tax rates on issuance
and renewal of licenses to dealers commission agents
and arhatis
Clause 13(61)(D)(l) Seeks to reduce the tax rate on purchase of property
Clause 13(61)(D)(m) Seeks to substitute the term “non-filer” with “ person not
appearing on active taxpayer list” in case of non cash
banking transaction
Clause 13(61)(D)(n) Seeks to substitute the term “non-filer” with “ person not
appearing on active taxpayer list” in case of advance
tax on insurance premium
Clause 13(61)(D)(o) Seeks to substitute the term “non-filer” with “ person not
appearing on active taxpayer list” in case of advance
222
tax on extraction of mineral
Clause 13(61)(D)(p) Seeks to substitute the term “non-filer” with “ person not
appearing on active taxpayer list” in case of amount
remitted abroad through credit cards
Clause 13(62)(A)(a) Seeks to exempt certain allowances of personnel of
armed forces
Clause 13(62)(A)(b) Seeks to exempt donations paid to Layton Rahmatullah
Benevolent Trust and Akhuwat
Clause 13(62)(A)(c) Seeks to provide exemption from tax on income to
Akhuwat and Audit Oversight Board
Clause 13(62)(A)(d) Seeks to exempt from tax profit and gains to a person
on sale of immoveable property to a rental REIT
Clause 13(62)(A)(e) Seeks to make a technical amendment
Clause 13(62)(A)(f) Seeks to provide exemption to erstwhile Tribal areas
previously granted through SRO
Clause 13(62)(B)(a) Seeks to reduce the scope of rebate to teachers and
researchers
Clause 13(62)(B)(b) Seeks to make a technical amendment
Clause 13(62)(C)(a) Seeks to enhance withholding tax rates on goods
transport services in lieu of exemption from sale of
223
goods
Clause 13(62)(C)(b) Seeks to withdraw certain exemption regarding non
furnishing of particulars and withholding statements
Clause 13(62)(C)(c) Seeks to omit to clause 6(94) whereby reduce rates for
certain services were enumerated
Clause 13(62)(C)(d) Seeks to withdraw exemption from multiple audits
within three years
Clause 13(62)(C)(d) Seeks to provide exemption to erstwhile Tribal areas
previously granted through SRO
Clause 13(63)(A)(a) Seeks to abolish initial depreciation on buildings
Clause 13 (64) Seeks to authorize the Commissioner to amend income
as per disclosure with SECP in case of insurance
business
Clause 13(65) Seeks to make technical amendments regarding
computation of income of banks
Clause 13(66) Seeks to provide rules for taxation, filing of return and
assessment of person not appearing in active
taxpayers’ list through the Tenth schedule
224
FEDERAL EXCISE ACT, 2005
Clause 14(1) Seeks to substitute the expression “Board, with the approval of
the Minister-in-charge,” with the words “Federal Government” in
clause 6(23a) of section 2
Clause 14(2) Seeks to insert new sub-section after sub-section (5) of section
3
Clause 14(3) Seeks to substitute the expression “Board, with the approval of
the Minister-in-charge,” with the words “Federal Government” in
sub-section (2) of section 7
Clause 14(4) Seeks to substitute sub-section (2) of section 16
Clause 14(5)(a) Seeks to omit the word “and” at the end, in clause 6(b) of sub-
section (2) of section 19
Clause 14(5)(b) Seeks to add the word “and” after the semi-colon at the end and
to add new clause 6(d) after clause 6(c) in sub-section 2 of
section 19
Clause 14(6) Seeks to insert new section 19A after section 19
Clause 14(7) Seeks to substitute the expression “Board, with the approval of
the Minister-in-charge,” with the words “Federal Government” in
sub-section (13) of section 22
Clause 14(8)(I)(a) Seeks to substitute the figure “seventeen” with the figure
225
“sixteen” in column (4) against S. No. 1 in column (1) of Table 1
in the First Schedule
Clause 14(8)(I)(b) Seeks to substitute S. No. 2 and entries relating thereto in
columns (2), (3) and (4) in column (1) of Table 1 in the First
Schedule
Clause 14(8)(I)(c) Seeks to substitute the word “fourteen” with the words “eleven
and half” in column (4) against S. No. 4, 5 and 6 in column (1) of
Table 1 in the First Schedule
Clause 14(8)(I)(d) Seeks to add explanation after the word “tobacco” in column (2)
against S. No. 7 in column (1) of Table 1 in the First Schedule
Clause 14(8)(I)(e) Seeks to substitute S. No. 9 and 10 in column (1) and entries
relating thereto in columns (2), (3) and (4) of Table 1 in the First
Schedule
Clause 14(8)(I)(f)
Seeks to omit S. No. 10a in column (1) and entries relating
thereto in columns (2), (3) and (4) of Table 1 in the First
Schedule
Clause 14(8)(I)(g) Seeks to substitute the words “two rupees” with the words “one
rupee and fifty paisa” in column (4) against S. No. 13 in column
(1) of Table 1 in the First Schedule
Clause 14(8)(I)(h) Seeks to substitute the expression “ten rupees per Million British
Thermal Unit (MMBTU)” with the words “Seventeen rupees and
226
eighteen paisa per hundred cubic meters” in column (4) against
S. No. 31 in column (1) of Table 1 in the First Schedule
Clause 14(8)(I)(i) Seeks to omit S. No. 54 in column (1) and entries relating
thereto in columns (2), (3) and (4) of Table 1 in the First
Schedule
Clause 14(8)(I)(j) Seeks to substitute S. No. 55B in column (1) and entries relating
thereto in columns (2), (3) and (4) of Table 1 in the First
Schedule.
Clause 14(8)(I)(k) Seeks to add new serial numbers and corresponding entries
relating thereto in columns (2), (3) and (4) after serial number 56
in column (1) of Table 1 in the First Schedule
Clause 14(8)(I)(l) Seeks to insert the expression “and 10” after the figure “9” under
the existing Restriction-1-Reduction after Table-1
Clause 14(8)(II)(i) Seeks to substitute the words “fifteen hundred” with the words
“two thousand” in column (4), against sub-clause 6(i) in column
(2) against serial 3 in column (1) of in Table II in the First
Schedule
Clause 14(8)(II)(ii) Seeks to substitute the words “nine hundred” with the words
“one thousand two hundred and fifty” in column (4), against sub-
clause 6(ii) in column (2) against serial 3 in column (1) of in
Table II in the First Schedule
227
Clause 14(9) Seeks to add new serial number 4 and entries relating thereto in
columns (1), (2) and (3) after omitted serial number 3 in column
(1) of the Table in the Second Schedule
Clause 14(10)(a) Seeks to omit clause 6(i) in column (2), against serial number 2
in column (1) of Table-II in the Third Schedule
Clause 14(10)(b) Seeks to substitute the word “terrestrial” after the word “or” in
clause 6(ii) in column (2), against serial number 2 in column (1)
of Table-II in the Third Schedule
Clause 14(11) Seeks to add new Schedule after Third Schedule
Recommended